Monday, October 1, 2012

Will your credit really got hurt by this hobby? What about my mortgage?

I’ve always been asked the question of “If I apply too many credit cards, I am concerned about my credit score and I am afraid that I can’t get a better rate mortgage”.

Let me give my personal experience.
1.      I just finished my 3rd time refinancing with 2.699% for 15 years fixed and zero cost.  (you just can’t believe the historic low rate at this time)
2.      My credit score is a bit over 710 now (down from 740) since I’ve done my app-o-rama back in Aug.
3.      I’ve consulted my mortgage broker in prior and confirmed that as long as I am staying in 700-740 range, 15 yr fixed rate is no different to a 780 score.
4.      I am not advising that for 5 or 7 yr ARM or other terms , let us say, 5% down the 740 score is the same rate as 700 rate. 740 score should have a better rate, consult your broker. However, you get the picture.

My score has a potential 20-40 points climbing based on the Credit Plus report that my broker sent to me, it means, in the next a few months, my credit score will be self-heal to 740 (excellent range).

During the course of the last 2 years, I’ve banked ~1.5 Million points and secured my mortgage at 2.699%, I just can’t believe it. J  My family enjoyed different domestic and international trips with only paying the tax of air tickets and resort fees in hotels. It saves us thousands of $$$.


  1. Does removing a CC hurt your credit score?

    1. you mean close a CC? it depends, if it's aged card, it will lower your avg credit history which will impact your score.