05-27-2013 02:09 PM - edited 05-27-2013 03:33 PM
05-27-2013 04:15 PM
Thank you! We both have a capital one and a orchard bank, all below 50% of the balance. Do you know what credit score lowe's is to get a good limit? I would like to get the fridge I want but thats upwards $2,000. I'm really not wanting to waste time applying on low limits.
If you go to Lowe's for the fridge you want, have the sales people write up the purchase and then take
it to the service desk to apply, this is what my daughter did for a washer/dryer she wanted, they approved her
for 2500.00 and she had no credit, hope this helps
05-27-2013 04:18 PM
Really? Our mortgage officer advised us to always keep our cards at 50% because thats where we get the best rates and credit scores. Thats really interesting. Thank you!
Your mortgage officer is misinformed about how FICO really works
05-27-2013 06:13 PM
05-27-2013 06:38 PM
After you close and you go to Lowes when you app, pick out the items you want to charge. When they try to open the acct, make sure you tell them ( if you have to recon the limit) that you just bought a house.
Post back with the results. Good luck!
05-27-2013 06:48 PM
I know nada about mortgages but I've heard this crazy advice about mortgage officers in other threads and have to wonder if they give this advice so they can charge a higher APR for lower scores? Just curious..
Well that will be the ending result of a higher APR!
The higher your utilization, the lower your score. The lower your utilization, the higher your score.
You've done the right thing by paying your cards down and keeping a small balance on one CC. If anything I'd have your mortgage guy pull your credit again after those new balances post to your reports to see how much of a change in scores you get. This guy is just ignorant of how Fico scoring works. If your utilization is at 50%, which is high as hell for Fico, and it drops to less than 10%, you should see a nice swing in your scores.
To give you an example, my score on EQ was 730 with 3% utilization. I'm at 18% now and my score is 707. It won't be the same swing for everyone because depending on your credit profile it could more or less.
05-27-2013 06:56 PM
05-27-2013 06:59 PM
Rates and commissions go hand in hand. Sounds to me that the LO wanted to have a little extra money on the back end and gave bad advice.
I truly think so too.
Higher scores better loan rates .......hummm
OP if you havent lock rate in yet and can pay down cards might be worth a final look at the int% rate on the loan
05-27-2013 07:05 PM
05-27-2013 07:08 PM
We locked in our rate at 3.25%...I didn't think that was bad considering we had the minimum score to get approved, but apparently I should have been asking questions and browsing thru here sooner.
Oh don't bother then your in good shape inspite of loan officers bad info but if you can afford to pay down cards before going on app spree it will look much much better for higher limits
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