Opening a Store Credit Card after Closing on Your New Home
You just closed on your first home. Congratulations! The excitement is palpable, and now you direct your attention to all the great stuff you need to fill this brand new home of yours. You feel like now is the time to sit back, put your feet up and stop worrying about your credit score, right? But, how important is it to maintain that stellar credit score now that have your dream home?
To your surprise, offers start coming in for 0% financing on a myriad of different home décor and appliance options. Perfect, right; well, think again, because these offers may come back to haunt you.
First off, it’s no coincidence that you’re being offered these “great” deals on a store credit card. Thanks to public records and credit databases, the whole world knows you just bought a home. It’s like when you get in a car accident, and all of the sudden you start getting letter after letter from attorneys.
You should always manage your credit responsibly, but new expenses and lower disposable income after buying a house can make that tricky.
Why is it critical to maintain a high credit score after buying a new home? Simply stated, you’ll need good credit in the future, particularly if you plan to buy a car or upgrade to a bigger house or even refinance at some point in the future.
Maintaining a high credit score doesn’t have to be a chore. You can maintain a high score by sticking to a few good habits. Making payments on time, keeping credit card balances low and having a mix of trade lines should keep your credit score above 700, depending on the length of your credit history.
It’s also important to routinely check your score and credit reports. Credit report mistakes are common, and an erroneous negative item or identity mix-up can cost you dearly.
Moral of the story: If you’re considering opening up a new credit card after closing, please make sure to ask an expert, so you can understand all potential ramifications.
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