New credit card 4 months before mortgage application?

user123a

Hi folks,

I'd love your thoughts on the following:

I'm a first time buyer planning to apply for a Shared Ownership mortgage May 2019. My Experian credit score is in the "Good" zone, just verging on Excellent. I've never had a credit card, but the Credit Club breakdown tells me that I could improve my rating by taking one out (provided it's fully paid off monthly etc.).

My question is: do I stand to benefit more by applying for a credit card now and improving my history of good credit, or do I stand to lose out by having the associated hard check on my credit report 4-5 months before applying for a mortgage?

Many thanks!

mihaicraciunph

I sometimes change my credit card if a good offer comes on (mostly Amex).
I’ve switched my current account in November and my credit card in December and I’ve just applied for a shared ownership application with nationwide Monday the 21st of jan. My financial advisor couldn’t say much and she also said they would look at more than just this. My credit cards have always been paid off in full and in time so I guess i’ll Find out what happens and if it really affects anything

user123a

That’s interesting to know, thanks for your reply. Congratulations on getting the process started, good luck with your application!

Maybe you can update us if the credit cards have any notable effect, if you find out?

mihaicraciunph

Thing is, I can't find any mention of my credit card on any credit reports, although I found my switch to First Direct.
When I applied for the credit card they mixed my middle name and surname so I wonder if that may have an impact... or not... I won't know until I get February's credit report perhaps.
We'll see if the mortgage lender is particularly bothered by it or not...

ACG

I would hold fire personally.
With 4 months its unlikely to make a huge difference one way or the other, but I would not risk it.