credit report inquires

preschool mom · 02-10-2008, 08:10 PM

New to the site, thanks for having me!

Things you need to know:

A: our home is currently on the market
B: 0% credit card expires in May
C: credit score 770 as of last fall

Question #1 . . . Regarding "B", I have received other offers for 0% tranfers but of course threw away the letters. If I call X company to find out if it was them who sent the offer, will they have to check my credit report? If yes . . . will that affect my credit score come time to purchase another house in hopefully 2 or 3 months?

Question #2 . . . I have 2 credit cards both at 0% interest rate . . . balance $7300 / $17300 limit with rate expiring in Aug . . . balance $7000 / $13500 limit with rate expiring in May

How will this affect our mortgage application?

I've read that the balance shouldn't be more than 30% of the limit. I tried to "up" the limit on one of the cards today but when he asked me what our household income was, he said that we didn't make enough to increase the limit - so much for being honest . . . so I immediaely called back to speak to another agent and was going to magically "up" our household income but he didn't ask me that question, he said he'd have to check my credit report before he could give me an answer.

Any strategy suggestions?

Thanks so much!

jlynn · 02-10-2008, 08:35 PM

A credit score of anything over 720 is usually fluff and unimportant to a mortgage. The balance at 30% of the limit is to optimize your FICO more so than a mortgage app concern. And as I said, you have an awesome score

.

Your biggest question now, is your income to debt ratio. How is that? And when you pulled your score last fall, did it include the credit to limit ratio above?

preschool mom · 02-10-2008, 09:47 PM

I found the report and yes, it does state balance and limit

as far as debt to ratio . . . we went from a 1099 self employed for the past 10 years to a w2 starting 1 year ago . . . now the "numbers" are not in our favor

even though after we took on the deductions/right-offs/depreciation etc etc we're still making the same amount, it was much easier getting a mortgage before

income this year $40,000
debt = car payment $385 per month
= credit cards $18000
= minimum payment $215 per month

jlynn · 02-10-2008, 09:55 PM

I don't know anymore what numbers mortgage companies are looking at but it used to 25% debt to income ratio, and (I think) 33% debt + mortgage to income ratio. Don't quote me on that its been quite some time.

I suspect you are looking pretty good for a broker. I'd get new reports and go talk to a couple of brokers to be sure if there is anything you need to do. Take your own reports so they don't pull and generate a hard, until you really are ready to start shopping.

preschool mom · 02-10-2008, 10:08 PM

thanks for that advice

what about the credit card 0% "expiration" issue . . . how will it affect my score if credit card companies have to check my report inorder for me to transfer my balance to another 0% card?

jlynn · 02-10-2008, 10:17 PM

Balance transfers are different than upping the limit. If your credit limit allows for it, then they shouldn't have to pull a Hard. If you have to increase your limit to do what you want to do, then ask them if they can do an AR (account review), which is a soft and doesn't cost points. Hards can cost anywhere from 1-5 points, depending on what day of the week it is, and what time of day, and the mood of FICO - seriously the numbers thrown out there are pretty random.

I have never done much of the balance transfer thing personally, if you mention some bank cards that you are thinking of using, someone here might can tell you what that particular bank's drill is for your situation.