01-28-2013 01:35 PM
This is my first time posting - so hopefully this question hasn't been asked before.
I have a Bank of America credit card. Payment is due on the 9th, with the statement being cut on the 16th. I pay off my balance each month and try to carry only a $0-$50 amount statement to statement (I have a 2500 credit limit). Well I received an alert today (28th) that my balance had increased to $199 and as a result my score dropped 4 points. I'm in the process of closing on a house so this is a huge deal!
Why have they done this?! I have had the card for 2 years and have never had a mid-cycle reporting!
Suggestions on how to fix this?
I'm worried that even if I get Bank of America to update it, my score won't recover those 4 points within the month!
01-28-2013 02:08 PM
Four points probably won't have a huge effect on your end rates, but I totally understand the worry. From my experience, if you make sure that your balance is 1%-9% of your limit by the statement closing date, you should gain those four points back. This kind of thing is usually responsive and short-lived.
01-28-2013 02:24 PM - edited 01-28-2013 02:24 PM
Yea - maybe I just psych myself out! But everytime my mortgage officer emails me, she includes the following message.
Please note!!! We WILL pull credit prior to closing and the day of closing for ALL loans and will require documentation and verification for any new inquiries and/or accounts BEFORE we can CLOSE! Please refrain from using or requesting any credit during the loan process for any reason as it may affect your approval and/or delay your closing!!!!
When I asked her about the purchases I have that renew on my card and have them paid off every month, she said they weren't a big deal. They were looking to make sure you don't go out and buy all new furniture. Still kind of makes me nervous.....especially since I had to put an extra 1000 on my card which bumped my score from 712 to 706 before I started the mortgage process.
Yikes! Credit cards are like poison!