Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
gokullu

1 Contribution
0 People Helped
Opening New Credit card & increasing Limit - how it will affect my credit score
My current credit score is 742. I have recently closed my auto loan and now I don't have any other debt. My only credit card is from BOFA and the monthly utilization is less about <6% and I used to pay the bill then and there. I am planning to buy a house and wondering if there is any options to bump my credit score further.
1. Can I increase the credit limit in my existing BOFA Card (may be to +5k )
2. Can I apply for a new credit card ? - This will increase my credit limit but it will be a hard hit so not sure whether this is useful and how much time it will take to affect in my credit.. as I would like to go for Home mortgage in less than 3 month.
3. Do both ?
Pls provide your valuable suggestion.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
33 Contributions
27 People Helped
Most Helpful Response

No new credit cards

Helpful to 2 out of 2 people

IMHO, I would not open a new card if applying for a mortgage in the next 3 months.  The lender may ask why you did this.  Your score is great and you should receive favorable rates.

If anything, go with the BofA credit line increase.  I would not risk a hard inquiry 3 months prior to applying for a mortgage.

Reply by
gokullu

1 Contribution
0 People Helped

Do they check my credit for 'credit-line' increase as well ?

Top Contributor
33 Contributions
27 People Helped

Lender looking at CL Increase

Usually, credit line increases are a soft inquiry--I will say that I have not experienced a hard inquiry when asking for one.  I don't have a definitive answer as to whether a lender will question a CL increase.  If you have selected a lender for your mortgage, ask them.  Happy hunting for your new home!

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.