Ok we are trying again in Jan to get a home loan ( you gotta give me credit for not giving up! LOL!). Anyways we found out this week that one of our cc got closed do to them not offering that product anymore. We still have a balance that I can pay off by the end of next month. We are frantic because we can not afford to lose any pts.I found this article that stated:
If you have a balance on the account when it's closed, the score will include the limit and balance on the closed account in the utilization calculation. As you pay down the balance your score might improve until the balance gets to zero. "In terms of the impact to your score, you could actually lower your score once the paid-off, closed account hits zero," says Fair Isaac's Paperno. That's because once it's paid off, the credit limit no longer gets factored into the utilization ratio.
So would I be best to pay down all but 10.00 in hopes to keep score up until loan goes through...but I do not know how this is all going to look to the underwriter....I guess I would have to explain that they closed the account and why, but will it be bad to have a balance on a closed account? The credit card is only a year old....I just need some advice from someone who knows about mortgages. We have been working so hard to try to get a mortgage and I am hoping this won't kill us when it all hits the credit report. I am hoping we do not lose our credit history with this card because we were perfect with it.
