Credit Mistakes After Mortgage Approval

A Common Credit Mistake Individuals Make After Mortgage Approval

Opening too many accounts at once: After being approved for a mortgage you should try not to open many other accounts immediately. People shop a lot after getting a mortgage and often take advantage of zero-percentage interest furniture/appliance purchases. Opening an excessive number of accounts right after getting such a large loan can damage scores significantly and take years to come back up. It is better if you can wait a year or two before opening a lot of accounts. For instance, if a consumer has a FICO Score of 790 and opens a mortgage and several credit card accounts, they may see their score drop 60+ points.

After applying for a mortgage and getting approved it is important to refrain from opening new credit for a year or two if you want to keep your scores as high as possible. Since your scores drop when new credit is updated, your average age of credit reduces.