how long should you wait to apply for credit after home purchase?
Posted by admin | Under Home Purchase Friday Nov 7, 2008I purchased my first home this year July. My score was 627. I have never had credit cards and was thinking of applying for a gas card. How long should I wait before applying or should I even bother. Should I apply for a department store card first.
No, don't get a department store card. They have ridiculous interest rates. A gas card is a very minor card and is very convenient to have. It doesn't negatively impact your credit score to have a credit card, as long as you don't run a high balance, pay late or go over your credit limit. I'd suggest getting a Visa or Mastercard. With your credit rating, you can get a good one with a low interest rate (9.9% or less). That's your most usable card. Just keep it paid off or pay it off quickly when you use it.
No, don't get a department store card. They have ridiculous interest rates. A gas card is a very minor card and is very convenient to have. It doesn't negatively impact your credit score to have a credit card, as long as you don't run a high balance, pay late or go over your credit limit. I'd suggest getting a Visa or Mastercard. With your credit rating, you can get a good one with a low interest rate (9.9% or less). That's your most usable card. Just keep it paid off or pay it off quickly when you use it.
References :
As long as your home purchase is completed then you can go ahead and apply for another credit item. However the best thing for your credit is the mortgage you just took out. On time mortgage payments help your credit immensely and of course late or missed mortgage payments are the worst. Make sure you pay the mortgage first each month.
If you are looking to obtain another form of credit to help our overall credit rating then a store card or credit card isn't the best item. They have higher rates and are revolving accounts. A gas card would be the same type of account.
You might want to look at a prepaid gas card or credit card where you deposit the money in the account and draw on it. This way you aren't borrowing the money at a high interest rate.
References :
don't get into debts, you will lose your home.
References :
Do NOT get gas cards or store cards–they HARM credit scores.
you might like http://www.LearnAboutCredit.com, which is one of my sites
References :