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Is it a bad idea to apply for a credit card while in the middle of a mortgage refinancing process?

I have a high credit score (760), and was approved for my bank's best rate. The refinancing process is taking awhile, and I would like to get a better rewards card than what I have. Would it be a bad idea to apply for a new credit card before the refinancing closes?

I wouldn't think so. Your credit is already strong, so it's not like they look at you as a 'borderline' credit risk. Any pings on your credit score from the lookups the CC company or mortgage company would do should be minimal. Again, since you're not on the borderline, I don't think it would drop your score into a lower level.

But then again, it seems like the banks are looking for any excuse these days, so who knows lol

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This entry was posted on Friday, June 12th, 2009 at 7:23 am and is filed under apply for credit card. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

7 Responses to “Is it a bad idea to apply for a credit card while in the middle of a mortgage refinancing process?”

  1. New_Mum_2_Be! on June 12th, 2009 at 12:55 pm

    they say dont apply for anything while another finance/loan etc is going through!

    GOOD LUCK
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  2. I wouldn't think so. Your credit is already strong, so it's not like they look at you as a 'borderline' credit risk. Any pings on your credit score from the lookups the CC company or mortgage company would do should be minimal. Again, since you're not on the borderline, I don't think it would drop your score into a lower level.

    But then again, it seems like the banks are looking for any excuse these days, so who knows lol
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  3. d'oh — yeah.

    it would look to the bank like you're trying to increase your total credit outstanding, which might make them rethink the rate they're going to give you. even a 1/4 percent APR increase is expensive.

    wait until after the refi is complete.
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  4. No definately do not apply till after closing if they rerun your report the inquiry and even approval of the card will change your score.
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  5. wait wait wait. do not risk messing up a mortgage refi for more airline miles!

    Cmon you can wait a few more weeks.
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  6. WAIT.
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  7. Well, if they already pulled your credit, it probably doesn't matter…unless your refinance takes long enough to where the credit report is nullified. It's not a great idea to do it, as it can drag down your score, and if by chance your loan hits any snags and you need to re-apply, your lower score could complicate matters. So it may be best to wait.
    References :
    http://www.thetruthaboutmortgage.com/

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