 TITLE: Will a New Credit Card Affect My Mortgage Application? CONTENT: A New Credit Card May Hurt Your Mortgage Application\n----------------------------------------------------\nOverall, opening a new credit card account and managing it wisely is good—not bad—for your credit. But getting a new card just before or during the mortgage application process isn't the best timing. Why? For one thing, a temporary drop is typical when you open a new account, and you can't accurately predict how your score will change. If it drops enough to move you from \"good\" to \"fair\" credit, for example, you may no longer qualify for your loan. A lower credit score may also cause your lender to bump up your interest rate. Even a small increase in the rate you pay can cost tens of thousands of dollars over the life of a mortgage.\nMaking a significant change to your credit profile also adds an element of instability to your application. A mortgage is a large loan with a long lifespan. Lenders are looking for evidence that you'll pay your loan predictably, month after month. A good credit score and clean credit report help show your reliability, along with a solid employment history, adequate down payment and ample savings. Any changes during the application process—a job change, a sudden move or a new card account, for example—can signal that your finances are in flux. These changes may also delay your approval as your lender verifies information.\nThe safest strategy is to avoid applying for new credit while you're going through the mortgage approval process and in the months leading up to your application. Put a temporary moratorium on shopping for new card offers. And, if you think you'll need to open new credit around the same time as your home loan application—for instance, to purchase a much-needed new car—look for ways to time your applications so that your other credit needs don't interfere with your mortgage approval. END