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Contributor
Posts: 102
Registered: ‎04-07-2009
0

Uh Oh

My LO just pulled my credit a week ago and we were approved through automated underwriting. He told me that he will not need to pull my credit again.

 

So, yesterday I was at Home Depot buying some things to make repairs to my house and stock up on stuff needed for the new house.

 

In a moment of weakness, I applied for and was approved for a $1,000.00 Home Depot Card. Now I'm really worried that my credit score will plummet as a result.

 

My scores are

EX: 632

EQ: 628

TU: 613

 

I have $1,000 of credit card debt that is paid off, but not yet reporting on my reports.

 

What do you think? Will my new cc kill my credit score? Can I close it now without consequence?

 

 

Established Contributor
Posts: 504
Registered: ‎03-27-2009
0

Re: Uh Oh

What was your AAoA previously? What will it be now? How much of that credit are you utilizing?

 

If you can pay the money off and it isn't going to change your AAoA by much then it should be fine, the worst hit will be the ding for pull... but your overall utl may even compensate for that.. if it halves your AAoA then that would suck but even then closing it is not going to change that now

Contributor
Posts: 102
Registered: ‎04-07-2009
0

Re: Uh Oh

MY AAoA is 2 years. My utilization is 18%, but that is because the other cards have not updated. It will be closer to 1 or 2% when they all update this month not including this new card.

 

I'm not sure how to calculate the AAoA, the report says my oldest account is 5 years 4 months old.

 

 

Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Uh Oh


creditgotmedown wrote:

My LO just pulled my credit a week ago and we were approved through automated underwriting. He told me that he will not need to pull my credit again.

 

So, yesterday I was at Home Depot buying some things to make repairs to my house and stock up on stuff needed for the new house.

 

In a moment of weakness, I applied for and was approved for a $1,000.00 Home Depot Card. Now I'm really worried that my credit score will plummet as a result.

 

My scores are

EX: 632

EQ: 628

TU: 613

 

I have $1,000 of credit card debt that is paid off, but not yet reporting on my reports.

 

What do you think? Will my new cc kill my credit score? Can I close it now without consequence?

 

 


 

Never buy new furniture or fix up stuff for the new house until you have closed on the new house.  And NEVER apply for a new account or put any new balance on an account prior to closing.

 

Usually your credit will be pulled again just prior to closing to make sure nothing has changed.  Mortgages are very sensitive to new accounts, inquiries, new balances and DTI.  When you change these things, it changes the factors, such as DTI, related to your application.

 

Once you decide you are applying for a mortgage.....you need to avoid any changes, other than positive changes like paying off or down balances, or having GW's or other improvements. 

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Established Contributor
Posts: 504
Registered: ‎03-27-2009
0

Re: Uh Oh

Write down the age (in months) of each account you have (including closed ones)

 

Add them up (total) and divide by the number of accounts you had (not including the new card)

 

Now divide the total (the one you got by adding together the age of each account) (in months) by the number of accounts you have (including the new card)

 

The first was your previous AAoA and the second is your new AAoA

Contributor
Posts: 102
Registered: ‎04-07-2009
0

Re: Uh Oh

Not good,

 

I am definitely going to lose my mind now.

 

Nothing can be done about it now.

 

Hopefully, it doesn't hurt me too much.

Established Contributor
Posts: 504
Registered: ‎03-27-2009
0

Re: Uh Oh

Just pay it off and leave it open, you'll know not to do the same again Smiley Very Happy

 

When are you closing? If it is within the next 30 days you may just get lucky and it won't be reporting yet!

Contributor
Posts: 102
Registered: ‎04-07-2009
0

Re: Uh Oh

I actually didn't use it for the purchase, so it has a 0 balance, worse case scenario, I'll have to wait a month or two for the score to bounce back over 620 if it even drops below that to begin with. Smiley Happy

 

Thanks.

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Contributor
Posts: 102
Registered: ‎04-07-2009
0

Re: Uh Oh

Ok, So I took the total months of all accounts which is 725 and divided that by the number of accounts I have:

 

725/30 = 24.1666

 

That is right on with what MyFico says my AAoA is.

 

I then divided total months by total accounts including the new account and came up with:

 

725/31 = 23.38

 

I'm not sure if this matters, the net affect is one month, so in a month's time it will report 24 months again anyhow.

 

 

Established Contributor
Posts: 504
Registered: ‎03-27-2009
0

Re: Uh Oh

Yup that looks good and that in and of itself shouldn't be too much of an issue, the pull may ding a little (tho I tend to find an individual hard pull is only between 5-7 points depending on the CRB), the extra available credit won't be a bad thing for your util ratio.  It may just end up cancelling itself out but i would hold off on any more apps (or shopping for a new house you haven't completed on yet... i say that knowing how tempting it is!)
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