@Anonymous wrote:Does anyone know if BOA is still slashing credit limits? I had a $2000.00 credit limit last year that they reduced to $600.00. Just paid off my credit card in full adn wondering if I will see the cut again. I'm nervous because I will be applying for a mortgage in the next two months. And yes, I've read the sticky notes at the top.
I think all lenders are still slashing CL's where they deem it appropriate, and probably will from here on out.
I wouldn't worry about it from a mortgage perspective though, even if the underwriter asks about it this is a softball question: I wasn't using the card while I was paying it down and they issued a CLD because I wasn't running up a ton of new charges on it, or BOFA did <insert nasty lender story here> so I decided to route my life through another another card, or even make it about rewards if you have any on another card. All valid and expected rationale, though I like how the first one can tie into a positive spin: exlimited my extraneous spending so that I could qualify and pay for a mortgage loan!
I wouldn't sweat it from a scoring perspective either if you have plans to clear your revolving debt enroute to mortgage application. You'll be fine.
@Anonymous wrote:
So now that the card is paid in full again, I shouldn't worry about another credit reduction/close. I'm never late paying on this card but I can't see how it won't affect my credit score it they close it. I have one other Capital One CC that is paid in full as well. Thanks in advance for any and all responses.
Closing an account is a different story: absolutely use the card if you want to keep it open. It's rare that lenders will close an active card unless there's something they don't like in your report (lates etc. on their or some other lender's tradeline). With only two cards, you do not want the BOFA account to be closed, run some charges through it regularly.
CLD = reduction in their exposure (if you're not using the CL, why allow it to be outstanding?) or possibly they didn't like something they saw on a soft pull. Not that huge of a deal except it can be a challenge to build back up past the $1000 CL mark again on cards.
Closing though, your FICO score won't be immediately affected, but you only have one open card at that point and really people are pretty certain that 2 > 1 for scoring purposes. Also to get that second tradeline back, you would have to go open another card, and that will impact you.
Just use both the BOFA and the Cap One CC's and you shouldn't have much if any problem.