Long story short:
-Divorced last year, credit score 790s.
-In April, I finished paying off the outstanding CC debt, which I took this on as part of the divorce settlement. It was through a debt payoff company (MMI) and it didn’t affect my credit score, which was still in the 790s in April. This debt was mostly my ex’s; I don’t have a spend-money addiction anymore.
The only debt I currently have right now is a car loan through the Bank of Dad, so officially as far as my credit is concerned, I currently have no outstanding debt on the books. My credit score when I pulled it in November has dropped to 760s. In hindsight I should have just financed the car, but I didn’t.
I’m at a quandry. I’ve been in the market to buy a house since April and don’t want my score to drop too much so I can get the best interest rate. Had I known I would be looking for a place for this damn long, I would have opened up a points/rewards card earlier this year so I could recoup the drop in my credit score (from opening up the card) before having to go for a mortgage loan. I’m not sure it’s a good idea to do it now, though. I have no idea how long I’ll be looking for a place to call home, and I don’t want to lower my score by opening a card and then have to negotiate a mortgage. But I my score is dropping by doing nothing, too, so…
Advice? Thoughts? What am I not considering?