Applying for credit during mortgage application

XEO25

Hi, quick question if anyone is able to advise...

I know applying for credit before a mortgage application is not recommended. However, would applying for a credit card / store credit after the mortgage application has been approved in full, but before exchange, be an issue? 

Thanks

emmajones1976

Potentially. Don't do it.

[Deleted User]

Don't do it.

And don't do it even more after exchange and before completion.

ACG

Not worth the risk. 

csgohan4

Which is more important ?

MaryNB

XEO25 said:

Hi, quick question if anyone is able to advise...

I know applying for credit before a mortgage application is not recommended. However, would applying for a credit card / store credit after the mortgage application has been approved in full, but before exchange, be an issue? 

Thanks

Even if a mortgage application is approved, the offer can still be withdrawn up until completion. Mortgage lenders sometimes carry out a final credit check before releasing funds. 

aoleks

do NOT, in any circumstances, do anything that could even remotely affect your credit score. you don't want to be one of the extremely few people who have their life ruined forever because of a stupid credit card or flashy car after exchange, but before completion.

after completion, buy 3 cars and apply for 20 credit cards, it won't matter at all! before, hell no!

yksi

No going back now so you asked what you should do? Learn from this and tell your friends so they learn too. Light a candle, say a prayer, cross your fingers. Using the card won't make a shred of difference (it's already on your report and you can't undo that). So go ahead and use it, just keep utilisation low and pay it off in full each month.

XEO25

I'm sick with worry about this and have been unable to sleep properly since understanding my error. I'm due to exchange on the 6th Dec and complete on the 20th Dec.

I applied for a new credit card after full offer but before exchange. The new card has a much better interest rate than my current card. Both cards have a clear balance.

Could I limit any potential damage by cancelling the original credit card I had (500 balance, nothing spent) and reduce the balance of the new card from 1,000 to 500, so that the amount of credit I have available hasn't actually changed? Or would doing so have any negative impact on my credit file?

Any advice would be greatly appreciated. 

[Deleted User]

Don't take any more credit related actions, whether opening or closing credit lines.

There's nothing more you can do now, so no point in worrying about it. 

themainman84

The good news is that you have a clear balance so it won't tip the scales of affordability, the only potential issue is the hard search that will appear due to your application. This could potentially be picked up if your lender runs another credit search. For what it's worth, in the rare occasion an offer is pulled it's because of someone taking finance on a car or buying a shed load of furniture on credit. I really dont think an offer will be pulled because of this. 

I'm not an expert but I would advise not to close your new credit card account but maybe someone more in the know could advise? Best of luck, I'm sure all will be well