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A CR problem, advice please!

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Anonymous
Not applicable

A CR problem, advice please!

We've been preapproved FHA but decided to wait 2-3 months until i finish school and begin working to bump our preapproval amount considerably. Our lender only requires 30 days employment out of school.

 

Anyway, when we met with our LO and came up with this plan, he just gave us our credit reports because they'll need to be repulled by then anyway. As we were looking over it, we noticed a CC on my husband's report that's not his! Smiley Sad

 

Now i'm in panic mode because i don't want this to mess with us getting a mortage in June. Funny enough it's in good standing. It's a $27,000 card with a few thousand dollar balance requiring a minimum payment of $82 a month.

 

If i understand correctly, disputing it right now could cause us problems with approval in June. On the flipside it's not our account, he could end up delinquent, etc etc. My husband said this has happened to him before and he actually suspects this is his father's account (no contact with his dad for 20 years). He has a common name, shared with his father but not a junior because different middle names.

 

What should we do?

Message 1 of 7
6 REPLIES 6
GFer
Valued Contributor

Re: A CR problem, advice please!

If you're going to wait a few months to apply for the mortgage, I would dispute it. Disputes are typically wrapped up in 30-45 days. I would call them and do dispute by phone. This way you get the opportunity to let them know it could very well be his fathers' account.



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Message 2 of 7
llecs
Moderator Emeritus

Re: A CR problem, advice please!

Remember, if this account is older than his AAoA or if his overall utilization outside of this CC is more than 20% (you said few thousand...I est. $6k by that comment) or he lacks a good mix of credit outside of this CC, then removing this account will harm his scores. Under a manual review, I wouldn't know if the $82 pmt would be a factor or not for you.

Edit to add...if there is any history of lates, then I probably would remove it anyway. You could always remove it after the mortgage.
Message Edited by llecs on 03-06-2009 11:35 AM
Message 3 of 7
Anonymous
Not applicable

Re: A CR problem, advice please!

Thanks guys Smiley Happy

 

I don't know what AAoA means. We're going FHA so his 700 midscore and we assumed his utilation was below 9%. That's not the case because the card has almost $8k charged on it. So removing it would actually help in the utilization aspect. He does have one 2500 cc of his own right now with $100 balance, student loans, and a car loan. It might hurt us a little in the DTI but i'm scared to touch it at all because i don't know what it will do lol

 

The card doesn't have any lates on it at all, but there's probably nothing stopping the real owner from maxing it out.

 

I just had him log into his myfico (we pulled our scores/reports about a month ago - 2 wks before our LO did) and it's not on there at all for any of the 3 agencies. Guess that's why i never noticed it before!

 

Why would it show up on the lender's report and not myfico? Now i'm really confused lol

Message 4 of 7
llecs
Moderator Emeritus

Re: A CR problem, advice please!

AAoA is avg. age of accounts. It can be calculated easily or you can find it on your FICO reports usually on page 2 or 3.

If your util is 9% without that CC, and if that CC is about 30% utilized, then removing it could help. If your AAoA is older than that CC, then you'll see an additional bump. You'll take a hit for the mix of credit though. However, there's not too much you can do about that before applying, unless you have 6 months or more before the lender pulls again.

If you look on the reports that you have with this TL listed, you may see a "reported date". I bet that reported date came after you last pulled your FICO report. Of course that doesn't answer where it got added on.
Message 5 of 7
Anonymous
Not applicable

Re: A CR problem, advice please!

I checked the report the LO pulled it says the card was opened in 1992 (my husband was 15 lol) and it doesn't actually tell me what the max limit is on the card. It only says Hi. Credit 22700 and Payment is $82. It also says 0 lates across the board.
Message 6 of 7
llecs
Moderator Emeritus

Re: A CR problem, advice please!

I would pull your FICO report. If it is a signature-type card, the CL or high limit may not even be reporting to the CRAs. If that is the case, then removing is would help his util.

Unfortunately, your hubby's AAoA is much lower than the age of that card (unless he got all of his credit at age 18). There'll be a hefty ding for that.

IMO, I'd rather have a clean report than have TLs reporting that shouldn't be there. I guess I'd remove it. A good LO will see past the AAoA.
Message 7 of 7
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