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I am doing everything that the mortgage guy told me needed to happen to get my score where it needed to be. I have paid my credit cards down to where he said they needed to be but they won't report for a few more days. He also said my DTI was too high because we are qualifying on me only and not my wife. He told me to get my truck loan refinanced into my wife's name only. I still have 2 auto loans left in my name. Well, I did that and my score tanked another 13 points. It seems everything I was instructed to do has hurt my score rather than help it. I was a 617 MyFico score before and now it is 587. I have not been late on anything and like I said my new balances on cards have not reported yet. Any advice? BTW it was a $42,000 loan that dropped off.
The loan closing would almost certainly hurt your score, however getting the cards down into the perfect zone will def help. And dti is a key component, even if you had 850 scores they cant loan above accepted dti levels for a loan that may be sold, which most mortgages are.
@Anonymous wrote:The loan closing would almost certainly hurt your score, however getting the cards down into the perfect zone will def help. And dti is a key component, even if you had 850 scores they cant loan above accepted dti levels for a loan that may be sold, which most mortgages are.
I had no idea it was going to hurt my scores. Which sucks because I was already so borderline on qualifying. My Util was very high last go around due to me being stupid and charging for a special gift for my wife's BDay. They reported 92% Util. I paid them all but not in time for them to report the lower balances last month. This month the Util will post at around 18%. I need to get my pre-qual for my loan by the end of June or my house build is a no-go. I am just stressed beyound belief.
Is this something that recovers quickly typically or am I in it for the long haul? Just so I can kinda know what to expect.
What are your current balances and current credit limits? Do you have other cc's with zero balances? Paying down the card balances ought to bring up your scores, but we reallly won't know until it posts to your CR. Some creditors are slow to report (especially Sychrony Bank).
I have had swings on my scores of 30+ points from having high utilitization to low utilization. YMMV Your scores can recover very quickly, but you have to get the new low balances reported.
@StartingOver10 wrote:What are your current balances and current credit limits? Do you have other cc's with zero balances? Paying down the card balances ought to bring up your scores, but we reallly won't know until it posts to your CR. Some creditors are slow to report (especially Sychrony Bank).
I have had swings on my scores of 30+ points from having high utilitization to low utilization. YMMV Your scores can recover very quickly, but you have to get the new low balances reported.
Cap1 Paltinum - $800 CL - $62 Balance
Cap1 QS - $800 CL - $46 Balance
Emblem - $400 CL - $0 Balance
Open Sky - $200 CL - $0 Balance
I also have 2 Synchrony cards but they have yet to report.
VS - $350 CL - $80 Balance
Express - $200 CL - $16 Balance
If you have made sizeable payments, you can ask the CCCs to do a midcycle report. Discover in particular has been noted to be friendly to doing them. A chase card will automatically report a 0 balance whenever it gets paid in full mid statement.
@Anonymous wrote:
@StartingOver10 wrote:What are your current balances and current credit limits? Do you have other cc's with zero balances? Paying down the card balances ought to bring up your scores, but we reallly won't know until it posts to your CR. Some creditors are slow to report (especially Sychrony Bank).
I have had swings on my scores of 30+ points from having high utilitization to low utilization. YMMV Your scores can recover very quickly, but you have to get the new low balances reported.
Cap1 Paltinum - $800 CL - $62 Balance
Cap1 QS - $800 CL - $46 Balance
Emblem - $400 CL - $0 Balance
Open Sky - $200 CL - $0 Balance
I also have 2 Synchrony cards but they have yet to report.
VS - $350 CL - $80 Balance
Express - $200 CL - $16 Balance
I mean Comenity not Synchrony.
So you will have 4 out 6 cards reporting a balance. Can you pay off at least two of those cards and preferably 3 before they report? That way you only have one reporting a balance. You will take a small hit on your score for the new accounts. Plus another hit on your score for having so many report a balance (even a $1 is a non-zero balance and counts against you). It is better that the new accounts report zero rather than with a balance especially since you are in the middle of applying for a mortgage. You will see a much higher score if all report zero but one and its balance is 1% to 9% of it's individual credit limit.
Stop applying for credit when you are in the mortgage process. We usually say to stop a few months in advance of your application so your score has time to recover before applying for a mortgage. Those that advise stopping 6 months to a year in advance are exaggerating the impact of new accounts and the u/w's view of new accounts. But applying for new cards immediately prior to making a mortgage application is not wise - unless you have an extremely thin file.
@StartingOver10 wrote:So you will have 4 out 6 cards reporting a balance. Can you pay off at least two of those cards and preferably 3 before they report? That way you only have one reporting a balance. You will take a small hit on your score for the new accounts. Plus another hit on your score for having so many report a balance (even a $1 is a non-zero balance and counts against you). It is better that the new accounts report zero rather than with a balance especially since you are in the middle of applying for a mortgage. You will see a much higher score if all report zero but one and its balance is 1% to 9% of it's individual credit limit.
Stop applying for credit when you are in the mortgage process. We usually say to stop a few months in advance of your application so your score has time to recover before applying for a mortgage. Those that advise stopping 6 months to a year in advance are exaggerating the impact of new accounts and the u/w's view of new accounts. But applying for new cards immediately prior to making a mortgage application is not wise - unless you have an extremely thin file.
I can pay them all to 0, just not sure if it will be before they report or not. I was told to get more trade lines by my mortgage guy and have not apped for anything since. The 2 Comenity cards are almost 2 months old now. So will they show new, new, or report as 2 month old accounts?