Posted on: 03rd Apr, 2012 02:50 am
I'm looking to buy a house in the next six months. I pulled my credit scores for TU and Exp and it is 641 and 665 respectively. I had a BK in Aug. '08 and included my home. I currently have one auto loan since the BK. The auto loan is the only recent history on the reports. Using MyFICO's score simulator, it suggests getting one credit card would add 20 to 50 points to my current scores. Should I get a credit card?
Hi Carousal,
You can take out a new credit card and make regular and timely payments on it and keep your balances low. If you do so, then you will find that it will have a positive impact on your credit score.
Thanks,
Jerry
You can take out a new credit card and make regular and timely payments on it and keep your balances low. If you do so, then you will find that it will have a positive impact on your credit score.
Thanks,
Jerry
Welcome Carousal,
You should take out a credit card only when you're sure that you will be able to make the payments on time. If you take out a credit card and can't make the payments on time, then it will have a rather negative affect on your credit report.
You should take out a credit card only when you're sure that you will be able to make the payments on time. If you take out a credit card and can't make the payments on time, then it will have a rather negative affect on your credit report.
When you buy a house in the next six months, what type mortgage will you be getting?
If it is an FHA mortgage, do not get the new credit card. Your credit scores are fine for FHA mortgage.
If you are getting a conventional loan, you can get such a loan with the credit scores you have, but, the rate will be higher than it would be if your score were higher. Also, if your down payment wiull be less than 20%, you will need PMI and may or may not need higher scores for that. If you will be getting a conventional loan, get the card.
This is assuming the simulator is correct.
If it is an FHA mortgage, do not get the new credit card. Your credit scores are fine for FHA mortgage.
If you are getting a conventional loan, you can get such a loan with the credit scores you have, but, the rate will be higher than it would be if your score were higher. Also, if your down payment wiull be less than 20%, you will need PMI and may or may not need higher scores for that. If you will be getting a conventional loan, get the card.
This is assuming the simulator is correct.
