Should I Open a New Credit Card (Upcoming Move)?
Here is the situation that I’m currently in (TLDR):
I have a currently Credit Score that fluctuates around 760. I am a homeowner with a very manageable mortgage. My home is my only debt since I recently paid off my car loan. I make good annual income for the area I live in giving me a pretty solid debt to income to ratio. The only negative here is that I work in sales and my earnings can fluctuate 10-20% annually.
I will be moving (NY to TX) next year to an apartment while keeping my home. The plan is to sell it and use the equity I clear for a down payment on a new home the following year or so. However, there will be expenses incurred during this process. Upgrades to my current home to increase its selling value may be a big expense. New furniture and moving costs will be a factor too. Then add the cost of upgrades to any new home I buy.
Increased expenses could mean higher utilization and I don’t want to take a credit hit in this process. I always hear there is no difference in getting a strong mortgage loan between a 750 credit score and an 800. But at least the 800 gives me cushion on taking a hit.
I currently have 3 credit cards and one charge card (AMEX Platinum). I put most of my daily expenses on the AMEX so my utilization remains low. I only put my DoorDash expenses on my Chase Sapphire due to the credit program they have. And I have 1-2 bills on my Capital One and Discover Cards to keep them open. I always pay on time and even pay multiple times a month (overkill?) to constantly keep utilization low. Additionally, each credit card has been open for more than 5 years.
My credit line across all 3 credit cards is $30,000. With that said, not one of my credit cards will increase my line. This puts me in a situation where I either have to open a new credit card (I get so many offers due to my credit score) and risk the hard pull bringing me below 750 or stay where I am and hope I can use my AMEX for all these upcoming expenses. Even if I only use AMEX, that balance is still reported. Low utilization only is one factor.
I really want that credit score cushion as I go through this major change over the next 2-3 years. Perhaps, I’m missing an alternative avenue here.
Any help here would be much appreciated.