Payment history and new accounts

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    I am currently in the stage of uploading all of my documents to my web file and pending a appointment with a counselor. However while researching I’ve noticed that each account has to have 12 months of payment history. I recently obtained 2 credit cards to help build my credit . They both carry 0 balances , would these suffice with a LOE explaining why I obtained them? Or would this delay my approval date if so would I still meet with a MC or wait a few months ? @ttrumble @Nelsont

    • This topic was modified 1 year, 6 months ago by Lanez93.

    I am pretty sure opening new accounts will potentially boost your credit but, will provide a set back in the process. I think you will need to show a history of good habits paying those cards.

    With that said always start the process as soon as possible and take the earliest appointment you can even if you know you aren’t ready. Would you rather be given an “action plan” now and take care of extraneous things while you wait so you can hit the ground running or would you rather wait first and then deal with the extraneous things? It’s up to you but, if you are worried about time keep your appointment.


    @Lanez93 I had a fairly new CC when I started, but also had 3 others, all with good history of being paid on time. They never questioned me. I don’t know if everyone situation is different or not.


    Hello Lanez93,

    Unfortunately, you have made one of the most common and most fundamental mistakes you can make when trying to buy a home, opening new lines of credit. People should NEVER open any new credit until after they close on their home unless it is a dire emergency. That doesn’t just apply to NACA, but anywhere you are trying to obtain a mortgage.

    Zero balances aren’t going to help you with NACA or in building your credit. The cards have to show a pattern of responsible usage to improve your credit, so a zero balance won’t help you there. Plus a zero balance won’t help you with NACA since the twelve month payment history is an absolute requirement, and you can’t have a twelve month history, even with a zero balance, until the account is actually twelve months old.

    (How sneakerz4me got qualified with a credit card less than 12 months old is beyond me. In all honesty it shouldn’t have happened.)

    You only have one option if you don’t want to wait another year to become a homeowner. CUT UP the credit cards and CLOSE the accounts. Write a Letter of Explanation and submit it to your NACA file explaining your reason for opening the accounts and that you did not realize that you should not have done it while trying to buy a home. Make sure to provide documentation from the creditor that the accounts are in fact closed. Then, as long as the accounts have had zero balances from the start, they can probably be overlooked.

    Tim Trumble
    Online Operations, NACA

    • This reply was modified 1 year, 6 months ago by TTrumble.
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