I am looking into buying a condo in the next 3-6 months. I have two credit cards open currently (both with 0 balance- one 3 years old and one 2 years old) and wanted to open a travel rewards card since I will be traveling internationally next summer and wanted help with the flight. Since I will be looking into buying a house I wanted to make sure that opening another credit card wouldn't hurt my credit. Currently I have good credit. Any help would be great!
2007-07-05 17:52:16 · 9 answers · asked by Anonymous in Business & Finance ➔ Credit
Finalize the loan on the condo first and then apply for the rewards card. Contrary to what others may have said, it could lower your score.
2007-07-05 20:22:01 · answer #1 · answered by TripleD 1 · 1⤊ 0⤋
I agree with TripleD - wait and apply for the card after the mortgage is finalized.
Never apply for credit within 6 months of applying for a mortgage.
Your scores will take a hit when the inquiries show up. Then if you are approved, you could take another hit when the new account shows up due to the new history. And since your oldest card is only 3 years old, you may take a pretty big hit.
Since your plan is to use the card next summer, there is no reason to apply right now and risk a higher interest rate on your mortgage.
2007-07-06 00:53:05 · answer #2 · answered by echo 7 · 0⤊ 0⤋
Multiple credit card, which are difficult to repay and monitor cause excessive burden on finances. Juggling with repayment schedules cause some of them to be missed, resulting in a negative credit rating. Unless absolutely essential avoid extra credit cards. Many people don't have credit cards and still spend their life comfortably. They don't have to worry about credit card debts. However, by the amount of convenience they bring to our life, credit cards have become a necessity. But, keeping only the minimum needed, will help avoid things from getting uglier when it comes to repayment.
Don't take cash advances
If a credit card has regular APR of 10% it doesn't mean that it will apply to every kind of transaction with that credit card. Different APR rates apply for different types of transactions. And cash advance attract the highest rates of interest - it could be double, or even more than that of the regular APR. The problem is compounded by cash advance fees which can range between 3-5% or more depending on the credit card company. Any cash advance with credit card is a loan on very high interest rate. The best thing is to avoid it at all costs and if urgency demands it, make sure to repay it in full with the next repayment. Read more from: http://www.credit-card-gallery.com/article/245,Credit_card_debt_can_be_avoided_if_you_follow_these_5_dependable_credit_card_tips
2007-07-05 23:40:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
So long as you have fewer than four cards, opening a new one won't hurt you. Put charges on it and pay it off each month: that will give you the miles and also build your credit record. However, to get enough miles for the flight, you'll want to be sure you're putting the mileage on a card with an airline you're going to fly, and even then it takes a lot of miles to get a free flight. Also, check the rules to see blackout dates and other limitations: you may find it impossible to actually use the miles. However, that said, I've used free miles to fly to Europe and Asia, so it's worked for me!
2007-07-05 18:08:06 · answer #4 · answered by Katherine W 7 · 0⤊ 0⤋
Not completely sure but I don't think it will have any affect (possibly a very slight effect - but I don't think so), so long as you pay the bills on time (then it will help establish more history - of course). You can always cancel one of the other credit cards you no longer need just to be on the safe side.
2007-07-05 18:01:49 · answer #5 · answered by Slumlord 7 · 0⤊ 0⤋
if you take another card then remember to pay the bills on time. You can choose discover cards for you as they give 0% intro apr with some rewards and they have travelling cards too and as you have good credit it will be best for you. You can also try with others.
To know more you can visit
http://www.creditcardbiz.blogspot.com
and
http://www.onlinepaymentoption.blogspot.com
2007-07-05 23:41:57 · answer #6 · answered by Pamella A 2 · 0⤊ 0⤋
it could hinder in the near future but credit scores are increased if you use the card or even have a balance of less than one half the card available...doesn't sound like it will hurt... go get prequalified at your bank or broker and ask them.
2007-07-05 18:01:34 · answer #7 · answered by sam hill 4 · 0⤊ 0⤋
greater helpful to no longer borrow if the clarification isn't a valid one. think of it by very carefully. yet, $60,000 borrowed by a credit card(s) will prepare to be very very high priced. take a glance on the pastime fee internet of any income tax impression.
2016-10-01 00:11:02 · answer #8 · answered by ? 4 · 0⤊ 0⤋
You can visit www.cashguru.info and find very useful tips and several articles on credit related matters.
2007-07-05 23:24:19 · answer #9 · answered by Anonymous · 0⤊ 0⤋