Should I apply for more credit?

  • Posts: 1190

Replied by FrankN on topic Re: Should I apply for more credit?

Be careful about closing to many too fast. You should talk to the organizations you plan to get a mortgage from to make sure you have to close those accounts. Closing accounts can negatively impact your credit score.
3 years 2 months ago #1

Please Log in or Create an account to join the conversation.

  • Posts: 217

Replied by Breakinger on topic Re: Should I apply for more credit?

I'm so glad that this information is on here. My husband and I are planning on moving in a few years and we are taking this time to get our finances in order. I didn't know anything about there being a limit on your total available credit in order to get a mortgage. I think it's time to close some accounts.
3 years 4 months ago #2

Please Log in or Create an account to join the conversation.

  • Posts: 112

Replied by Egghead on topic Re: Should I apply for more credit?

Good point. I will add, although I am sure may here know this already, don't apply to transfer a credit card balance to an account with a lower rate during the mortgage application either.
Last edit: 3 years 4 months ago by Egghead.
3 years 4 months ago #3

Please Log in or Create an account to join the conversation.

  • Posts: 141

Replied by patse on topic Re: Should I apply for more credit?

Mortgage companies are tough. They will tell you right from the start. Don't take out any new loans or credit cards if you're in the process of trying to obtain a mortgage.
3 years 4 months ago #4

Please Log in or Create an account to join the conversation.

  • Talblkman65
  • Talblkman65's Avatar Topic Author
  • Offline
  • New Member
  • New Member
  • Posts: 4

Replied by Talblkman65 on topic Re: Should I apply for more credit?

And from the time you apply till you close DONT USE ANY CREDIT WHATSOEVER, continue to pay your bills of course but dont use any charge cards or open new lines. So its not how much credit you have, but that you are using the credit you have wisely.


Thank you!! I've come to this conclusion and that's how i'm going to handle my situation. I don't plan on applying until April of next year - by then HOPEFULLy my process will be clean and simple. NO extra credit for me. I'll stick with my currect three revolving account totaling a mere $900. Maybe one of them will increase the limit but truth be told, doesn't matter to me.
Thank you![/quote]
6 years 10 months ago #5

Please Log in or Create an account to join the conversation.

  • Talblkman65
  • Talblkman65's Avatar Topic Author
  • Offline
  • New Member
  • New Member
  • Posts: 4

Replied by Talblkman65 on topic Re: Should I apply for more credit?

And from the time you apply till you close DONT USE ANY CREDIT WHATSOEVER, continue to pay your bills of course but dont use any charge cards or open new lines. So its not how much credit you have, but that you are using the credit you have wisely.[/quote]

Thank you!! I've come to this conclusion and that's how i'm going to handle my situation. I don't plan on applying until April of next year - by then HOPEFULLy my process will be clean and simple. NO extra credit for me. I'll stick with my currect three revolving account totaling a mere $900. Maybe one of them will increase the limit but truth be told, doesn't matter to me.
Thank you.
6 years 10 months ago #6

Please Log in or Create an account to join the conversation.

  • Talblkman65
  • Talblkman65's Avatar Topic Author
  • Offline
  • New Member
  • New Member
  • Posts: 4

Replied by Talblkman65 on topic Re: Should I apply for more credit?

"You want as simple and clean an application as possible. "

Thank you for your reply. I strongly agree with "You want a simple and clean application..." Consequently, with help from responders to my post and thinking I've decided NOT to apply for more credit. Actually do exactly what you suggested and keep my three cards utilization very low and save. My goal is to apply for a mortgage in April of next year. I just get a little excited every now and again and feel I need to be doing SOMETHING more to help the process.
6 years 10 months ago #7

Please Log in or Create an account to join the conversation.

  • Posts: 41

Replied by Roughdraft on topic Re: Should I apply for more credit?

I had an interesting experience this morning, I have a credit union card that I opened in March that was a gold card, limit is $5,000 with a rate of 12.99%, I wanted to get a lower rate since my score has increased to 743, so I applied and their system approved me for $10,000 at a rate of 9.99%, I get a call at work this morning from the loan officer asking me what I am trying to do, get a lower rate obviously, well one thing I didnt realize is and she brought this to my attention, I have $126,000 in available credit, now mind you I have mangaged all my accounts stellar, but from her point of view I am now too risky! Talk about a wake up call for me, I guess I have collected so many cards in the last few years and not used them all to really know where I was at with limits, she was very nice to me and said my score was the only reason the system approved my application, but unil I close some of those accounts and get my available down I am too risky for them! So to those who carry alot of credit cards, make sure you keep your limits within reason and dont open too many accounts! What a wake up call for me!


Yes, I have been trying to explain to some folks on here that there is such a thing as too much credit. Wow, $126,000 is a lot of available credit. Banks are supposed to look at that. I've read where some banks don't want to see you have more than 50-75% of your total household income in available credit. For someone such as myself, that's only around $25,000. Even then, I think that's a lot. In fact, as much as I love FG I have found myself trying to stay away a little. I feel as I am constantly being temped to apply for new cards, as I read about the great stories of people applying, I find myselg applying for more cards than I need.

You never see posts about someone claiming they think they have too much credit. Even then, like I said $126,000 is a lot, but again I don't know what your personal situation is, and how that compairs to your annual household income, but I guess its pretty safe to say that you can have a substantially large amount of available credit and still be approved for additonal cards. Good post Patrick12!
6 years 10 months ago #8

Please Log in or Create an account to join the conversation.

  • Posts: 1261

Replied by Wanderer on topic Re: Should I apply for more credit?

I had an interesting experience this morning, I have a credit union card that I opened in March that was a gold card, limit is $5,000 with a rate of 12.99%, I wanted to get a lower rate since my score has increased to 743, so I applied and their system approved me for $10,000 at a rate of 9.99%, I get a call at work this morning from the loan officer asking me what I am trying to do, get a lower rate obviously, well one thing I didnt realize is and she brought this to my attention, I have $126,000 in available credit, now mind you I have mangaged all my accounts stellar, but from her point of view I am now too risky! Talk about a wake up call for me, I guess I have collected so many cards in the last few years and not used them all to really know where I was at with limits, she was very nice to me and said my score was the only reason the system approved my application, but unil I close some of those accounts and get my available down I am too risky for them! So to those who carry alot of credit cards, make sure you keep your limits within reason and dont open too many accounts! What a wake up call for me!


Interesting...! Thanks for the heads up.

Now as a follow on your comments, I closed three bank credit cards (in the last thirty days - September 2012) and reduced my available credit by $19,000. As luck would have it, I was offered to be a bank credit card member of a major bank with an Affinity Visa Signature Bank Card and their Cash+ Visa Signature Bank Card. Wonder... my credit scores all went up with the closing of the three accounts. Also, as the old inquirys fall off my scores go up a little more. Another interesting finding, my initial credit lines start at $9,000 or more ... NOT the $200 CL I used to always see for starters.

It feels good to have bank credit card offers come in the mail harking the best cards the banks have to offer. It only took me from the year 2000 until 2012 to finally move my scores over 800 and get the best offers. That BK in 09/2001 really hung around my neck like and Albatross... Way to long! From 1972 'till 2000 I had perfect credit then I lost my job and decided to start a business (lived on credit cards and had to file the big Ch 7 BK). Today with approximately twelve years of tough financials I clawed my way back.

To FG Posters there is life after the big baddies but it takes many years and patience. Despite claims in the marketing world that we can "fix your credit"... the truth is you have to re-establish yourself over a long period of time "patience." Oh yes, there are many things you may read on the FG site that will assist you greatly in the building of credit or re-establsihing yourself and they work. But... "patience"... is the key word.

A final thought... "...the man who owns the gold rules..." If you wonder what I mean, the lendors control whether a person qualifies or not. To some degree we also control who we seek as our creditors with a note... in the early years few people wanted my applications.
6 years 10 months ago #9

Please Log in or Create an account to join the conversation.

  • Posts: 2

Replied by kuhren on topic Re: Should I apply for more credit?

hey im trying to get a loan with a large amount my credit score is 550 what should i do please help thanks...:innocent:
6 years 10 months ago #10

Please Log in or Create an account to join the conversation.

  • Posts: 137

Replied by patrick12 on topic Re: Should I apply for more credit?

I had an interesting experience this morning, I have a credit union card that I opened in March that was a gold card, limit is $5,000 with a rate of 12.99%, I wanted to get a lower rate since my score has increased to 743, so I applied and their system approved me for $10,000 at a rate of 9.99%, I get a call at work this morning from the loan officer asking me what I am trying to do, get a lower rate obviously, well one thing I didnt realize is and she brought this to my attention, I have $126,000 in available credit, now mind you I have mangaged all my accounts stellar, but from her point of view I am now too risky! Talk about a wake up call for me, I guess I have collected so many cards in the last few years and not used them all to really know where I was at with limits, she was very nice to me and said my score was the only reason the system approved my application, but unil I close some of those accounts and get my available down I am too risky for them! So to those who carry alot of credit cards, make sure you keep your limits within reason and dont open too many accounts! What a wake up call for me! :scared:
6 years 10 months ago #11

Please Log in or Create an account to join the conversation.

  • Posts: 107

Replied by SAR1954 on topic Re: Should I apply for more credit?

When I applied for my mortgage loan about 2 years ago now, I was in the same situation, cs was about 620 +/- with a few credit lines and one care loan. The biggest advice I received from my mortgage lender was not getting more credit, but proper credit utilization. Make sure your balances are low and bills are paid on time. Prior to closing, to bring my score up some, I had to pay down a credit card even more than what I already had paid in order to close. And from the time you apply till you close DONT USE ANY CREDIT WHATSOEVER, continue to pay your bills of course but dont use any charge cards or open new lines. So its not how much credit you have, but that you are using the credit you have wisely.
6 years 10 months ago #12

Please Log in or Create an account to join the conversation.

  • Posts: 1261

Replied by Wanderer on topic Re: Should I apply for more credit?

I'm desperately seeking my first home mortgage for no more then 100k. After two years of working on my credit i'm at about 62o (+- 20 depending on bureau). I have three unsecured credit cards which I obtained in Jan. of 2012. I would like to know should I add to my credit profile by by applying for a store credit card (JC Penny) to have a more well rounded credit profile?


Mortgage Lendors do not want to see new lines of credit when you are applying and processing a loan. The JCPenny Card would assist with rounding out your credit file but NOT when you are nearing a loan application. Likely you want to steer clear of new credit for at least six months (note the game for mortgages changes all the time so I only hope I am current).

When I applied for a mortgage I had some newer credit lines and had to write a letter of explanation as to why each line existed and for what purpose. The mortgage lendor reviewed and then had to accept what I said or they would reject my application. Lucky they accepted my letter. You want as simple and clean an application as possible. Missed the debt relationship... they like 25% or less but may go to around 36%. Your credit score is going to afffect loan approval and interest rate. Again, a realtor or mortgage lendor in your area will share these requirements so no one wastes there time.

You could always talk with a realtor or mortgage lender and get a sense of what they expect. If the rules have changed, fine (I doubt it from what I have read...). Good luck.
6 years 10 months ago #13

Please Log in or Create an account to join the conversation.

  • Posts: 41

Replied by derek1061 on topic Re: Should I apply for more credit?

Getting approved for a mortgage in todays economy is VERY different than it was 5-6 years ago. In todays world in order to get a decent interest rate or even get approved for that matter you need a fairly strong credit history which should include a diverse portfolio of revolving accounts as well as installment loans. I know that a traditional bank likes to see at least 3 revolving accounts and 2 installment account to meet the bare minimum for underwriting approval (Chase & Wells Fargo tell you on their website what there general requirements are for mortgage loans), and you must have at least a 2 year credit history. Also debt to income ratio now plays a huge role as to whether or not you will be approved and the amount you are approved for. My opinion would be to apply for another credit card such as a card where you have a banking relationship and wait at least one year before applying for a mortgage, this would insure that you have enough credit accounts, and who knows your credit score might also improve in the next year.
6 years 10 months ago #14

Please Log in or Create an account to join the conversation.

  • Talblkman65
  • Talblkman65's Avatar Topic Author
  • Offline
  • New Member
  • New Member
  • Posts: 4

was created by Talblkman65

I'm desperately seeking my first home mortgage for no more then 100k. After two years of working on my credit i'm at about 62o (+- 20 depending on bureau). I have three unsecured credit cards which I obtained in Jan. of 2012. I would like to know should I add to my credit profile by by applying for a store credit card (JC Penny) to have a more well rounded credit profile?
6 years 10 months ago #15

Please Log in or Create an account to join the conversation.