I've been watching this site for a few months now and I've learned alot about ways to deal with all sorts of credit issues and I wanted to say thanks to everyone and also ask another question: People has told me that once you are approved for a home mortgage loan and go through the closing process that you are pretty much able to get almost anything you want after that. I just wanted to know is that true and if so why?
???? YOU MEAN LIKE A LIMIT INCREASE BEFORE 6+ YEARS ON MBNA??? NO YOU MEAN LIKE A LIMIT INCREASE BEFORE 2+ YEARS ON AMEX BLUE??? NO YOU MEAN LIKE A "PRE-APPROVED" AMEX DELTA GOLD??? NO YOU MEAN LIKE A "PRE-APPROVED" AMEX PLAT CASH BACK??? NO GET RID OF THE "GEORGE FACTOR"??? NO
not true. You still have to qualitfy creditwise and a mortgage is just a piece of the credit puzzle. fla-tan
Actually, I found it harder to obtain items via credit. Eg. new credit cards, new cars, etc. because with my new mortgage my debt load increased. Many banks felt my debt obligations were too high. I was still approved for everything I applied for, but my CL was substantially reduced from what I would usually get. Any large tickets are out of the question. I have not applied for one, because I have no reason to, but just looking at our new debt load I know a bank would not approve us for we wanted. Dani
My experience has been about the same....current credit utilization seems to trump everything in terms of score determination and credit approval.
Basically, a credit grantor will extend (or not) credit to you based on an aggregation of many factors -- and they are different for each potential grantor. A mortgage is not a panacea for any/all other negative credit factors -- you're not going to get a Gold or Platinum Visa/MC with a zillion dollar limit, simply because you have a mortgage. As others said, a mortgage can actually HURT your chances of being extended new credit -- at first. Any NEW accounts will bring the age of your accounts DOWN, which is a negative factor. In addition, the debt load of the mortgage can be a negative factor if your income level won't support that mortgage, your car loan and other liabilities. However ... Once your mortgage is established (i.e., a period of on time payments), things start getting better. Eventually, that mortgage WILL "help" you get those credit cards and other lines of credit, as long as you've shown that you can and DO repay your mortgage ON TIME and AS AGREED. As I initially stated, whether or not you can get that high-limit credit card is not predicated on JUST having a mortgage. Factor such as your past repayment history, your current open accounts and balance to credit limit ratios, the number of recent attempts (inquiries) to get new credit, as well as your household income are a good majority of the factors that most credit grantors look at when making the decision to give you the "Thumbs Up" or "Thumbs Down". And don't be in a big rush to run out and get more new credit extended IMMEDIATELY AFTER getting that mortgage closed, even if you CAN. Get used to making that mortgage payment every month, along with your other bills, to make sure you don't over extend yourself (and get in trouble with that nice new mortgage loan).
