Say Yes to that New Store Credit Card: Can it Derail Your Dreams of Buying a Home?

Reblogger Steven Cook
Industry Observer with No Longer Processing Mortgages. MLO #293441 expired

Gene Mundt in Illinois is giving borrowers a good "early warning" on shopping between now and the end of the year - and the stores' push to get you to use their cards and the negative impact it could have on a home purchase or refinance.

 

Saying Yes to that New Store Credit Card: 

Can it Derail Your Dreams of Buying a Home? 

 

     My wife and mom went shopping together one day this last week.  Both have already started thinking about Christmas shopping.  Seems they're not alone.  


FREE Mortgage Consultation with Gene Mundt, Mortgage Lender     If you've watched much TV over the past few weeks, you've probably caught a commercial or two heralding the approaching holiday retail shopping season.  Holiday decorations to put you in a holiday shopping mood have begun to pop up in stores too. 

     Yep ... the "push" for your holiday shopping dollars has officially begun and we haven't even seen Halloween yet .  And boy, do I mean ... push ...     

     Both my mom and wife related that they'd received the inevitable invitations to open up new credit cards and "save" on their purchases at store registers.  One clerk had been particularly relentless.  She had gone as far as suggesting to my mom that she open up an additional card at the store to get her "savings".  My wife was a bit alarmed at how dogged this clerk's pursuit of my mom (a senior) was.       

     I've written on the topic of opening up new credit around the holidays before.  But the advice and message contained within that older post, as well as this one, is sound and valuable at any point in the year ... especially if you're presently in the process of buying a home or refinancing ... or hoping to buy a home or refinance at some point in the future     

     When facing this at a register, you must stop and examine:  Is the new account or credit card actually as big a savings to you as the clerk  says?        FREE Mortgage Consultation with Gene Mundt, Mortgage Lender

     To answer, you must consider this:  What other credit obligations or credit cards do you have?  Do you know the total amount of your debt?  How would opening the new account effect your Credit Scores?      

     Will you being paying off the new account's balance in full every month or carrying a balance?  Do you know what the terms of your new account will be?  More ...     

     It's a bit more complicated than presented at that register, isn't it?  That seemingly minor credit card?  It might end-up costing you big time.  Not only in dollars.  But also in your Credit Score and your ability to obtain financing now or in the future.


     So stop and think prior to saying "yes" at that register.  What are your true priorities?  What ultimately means more to you?  Saving a minor amount on a retail purchase you're making today ... or being financially and credit capable of buying the home you want now or in the future?      

     Saying Yes to that New Store Credit Card: Can it Derail Your Dreams of Buying a Home?  While you're standing at that register, you must decide ...

 

     *  Hoping to Buy a Home or Refinance in a Lincoln-Way CommunityWill County, DuPage County, or elsewhere in Chicagoland?  Contact me!  I'll put my 36 years of mortgage experience and expertise hard to work on your behalf.      I can be easily found at:

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
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Gene Mundt

Regional Manager - Mortgage Lender

American Portfolio Mortgage Corp.

                                                                    Personal NMLS #216987

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NMLS # 175656

 

Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.  Gene Mundt, Mortgage Lender can be contacted at:  815.524.2280 or via his email: gmundt@goapmc.com.

Contact Gene Mundt, Mortgage Lender soon!

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Rainmaker
158,497
Suzanne Taylor
Ultima Real Estate - Corpus Christi - Corpus Christi, TX
Home Sales In Corpus Christi, TX

When I was at Penneys today, I heard them announce "magic number 21", when I asked the clerk what that meant, she said they start with 30 as the number of new accounts to open each day, today they were down to 21.

Sep 30, 2013 08:17 AM #1
Rainer
284,418
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Suzanne - well, I guess, it is better than that they started at zero and were up to 21 by then.  Let's see, Even if they get only 10 accounts a day. between now and Dec 15 - that would be 750 accounts at just that one store!

Sep 30, 2013 08:25 AM #2
Rainmaker
1,220,045
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Appreciate the re-posting, Steven ... thank you!  I think you and I know this is a message worth "pushing".  And I like the math you did ... wow.  Hadn't thought of it that way!

Gene

Oct 03, 2013 02:15 AM #3
Rainmaker
557,966
Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Great reblog Steve. Christmas is coming and store credit cards can be very tempting. But the effect can be damaging.

Oct 14, 2013 09:20 PM #4
Rainer
284,418
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Maria -- not only can they be damaging, but many who are looking to buy, don't even think about it, even if their lenders have counselled them about it.

Oct 15, 2013 05:50 AM #5
Rainmaker
2,704,514
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Steven,

Great repost on Gene's blog...no matter how many times a home buyer is warned, some still slip and buy things that hurt or ruin their chances for a closing.

Oct 23, 2013 12:03 AM #6
Rainmaker
2,237,529
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good choice for a re-blog. Gene does a great job explaining what the good, the bad and the ugly when it comes to store credit cards.

Nov 05, 2013 02:22 AM #7
Rainmaker
2,741,638
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I'm very wart of getting any kind of store credit in usually any kind of way. Thank you for this profile of everything!

Dec 24, 2016 11:52 PM #8
Rainmaker
2,741,638
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Some really strange reason I didn't realize it was a re--blog until now. Sorry about that! Good job in their Christmas if you're celebrating.

Dec 24, 2016 11:53 PM #9
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Rainer
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Steven Cook

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