topic Re: just approved for 15,000 line of credit in Personal Finance

just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 00:29:05 GMT

hello all,

I need some help making a decision i have worked on my credit to get it where it is, just approved for a credit card with my credit union, closing on a house in 90 days. I heard that increasing credit will bring up your score. is this true should i accept the offer? if i dont and they pulled my credit that will drop my score.

any suggestions would be great.

perplexed in closing of house

Re: just approved for 15,000 line of credit

pipeguy — Tue, 21 Nov 2017 01:37:15 GMT

I don't know how close you are to a final approval on your mortgage, but the general advice is do NOT open any new accounts or make any large purchases prior to closing. 90 days out you are probably not that close to dotting the I's or crossing the tees so I'd say if you don't have a lot of credit, go ahead and accept the $15k card which will help your utility, however I certainly would not run a balance on the card - in other words pay in full. Bottom line is if the goal is a mortgage, be very careful in handling your "risk factors".

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 01:43:05 GMT

Thank you. I dont plan on using it until after i sign the dotted line. The house in being built and they just laid the foundation so i am sure it wont be completed until the 2nd or 3rd week in February.
Thank you for your response

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 02:00:49 GMT

If you're approved, the account is already open whether you decide to accept (no such thing) or not, you can call and close the account but it will still report to the CRAs that you opened and closed an account so whatever possible damage to your mortgage app is already done. In other words, you might as well keep the card if it's a card you wanted to begin with. In the future, don't app for anything else for as long as you can before a mortgage application.

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 02:06:00 GMT

thank you for your response, the mortgage application has been done a while back and the house is being built and will not be completed for 4-6 months they just laid the foundation and if they build a house in 30 days i surely wouldnt move into it, because it was just thrown together. I just wanted to bring my credit score up just a little bit more so my interest rate wouldn't be so high i am close to 700 just short of 45 points. i guess i messed up my chances in getting this house dumb move on my part i guess.

we live and learn from our mistakes

thanks again for your response i love this i learn so much form this forum

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 02:23:23 GMT

No problem.

Adding new credit typically hurts your score in the short term because of the HP and the hit to average age of accounts and age of your youngest account when it hits your report, it can also negatively impact many lender's internal risk scores. The benefits of adding new credit typically don't come until much later when the said account has aged (with perfect payment history) and the effect of the HP phased out.

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 02:28:05 GMT

thanks again,

i guess i just messed up my chances of getting that loan, i knew it was too good to be true, thanks for your wealth of knowledge for i am new to the home owners game

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 02:36:20 GMT

I wouldn't go that far, just make sure you don't apply for any more new credit and don't let large balances report not just on this new account but also on all your other accounts. Good luck with your mortgage, I remember when I first got my own home, exciting times.

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 02:40:30 GMT

thanks again, no my accounts are all up to date no large balances on any of them I have been keeping the utilization around 8% , yes I am totally excited this has always been on my bucket list of things to do.

have a blessed holiday season and thank you for all your tips i will keep you posted on the closing of the house

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 02:47:51 GMT

@Anonymous wrote:
thanks again, no my accounts are all up to date no large balances on any of them I have been keeping the utilization around 8% , yes I am totally excited this has always been on my bucket list of things to do.

have a blessed holiday season and thank you for all your tips i will keep you posted on the closing of the house

You as well.

Re: just approved for 15,000 line of credit

SouthJamaica — Tue, 21 Nov 2017 04:16:25 GMT

@Anonymous wrote:
hello all,
I need some help making a decision i have worked on my credit to get it where it is, just approved for a credit card with my credit union, closing on a house in 90 days. I heard that increasing credit will bring up your score. is this true should i accept the offer? if i dont and they pulled my credit that will drop my score.

any suggestions would be great.

perplexed in closing of house

You should not open any new credit until after your mortgage closes.

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 05:54:33 GMT

Oh well too late i just have to wait and suffer the consequences i guess
Thanks for your response

Re: just approved for 15,000 line of credit

Anonymous — Tue, 21 Nov 2017 05:56:20 GMT

Oh goodness to late i guess this is a lesson to learn it's all left up to GOD know

Re: just approved for 15,000 line of credit

tcbofade — Tue, 21 Nov 2017 15:44:19 GMT

You're too worried.

Opening ONE new account is not going to kill your mortgage.

Just don't open any more.

Re: just approved for 15,000 line of credit

Anonymous — Wed, 22 Nov 2017 18:32:37 GMT

Congrats on the house, I think the first thing to do is contact your Mortgage Loan officer and let them know what is going on. They should be able to guide you on your way through this issue

Re: just approved for 15,000 line of credit

UncleB — Mon, 27 Nov 2017 12:22:10 GMT

@Anonymous wrote:
Congrats on the house, I think the first thing to do is contact your Mortgage Loan officer and let them know what is going on. They should be able to guide you on your way through this issue

^^^ This exactly.

For my first mortgage I was borderline for the particular loan my mortgage broker had in mind and something showing up last minute made me no longer meet the criteria. It wasn't a show-stopper, but it did give me a higher rate (she had to move me to another loan type).

I'm not saying this will be the case with you, but it's better to be up-front with your mortgage person so that he/she can make sure you won't have any issues due to the new account (it's not like you'll be able to hide it anyway).

Also remember that your mortgage person is working for you (and they want you to get your mortgage - that's how they get paid) so it's generally best to keep in close contact with him/her on any financial changes until you have the keys in your hand.

Re: just approved for 15,000 line of credit

Anonymous — Mon, 27 Nov 2017 20:58:50 GMT

@UncleB wrote:
@Anonymous wrote:
Congrats on the house, I think the first thing to do is contact your Mortgage Loan officer and let them know what is going on. They should be able to guide you on your way through this issue
^^^ This exactly.

For my first mortgage I was borderline for the particular loan my mortgage broker had in mind and something showing up last minute made me no longer meet the criteria. It wasn't a show-stopper, but it did give me a higher rate (she had to move me to another loan type).

I'm not saying this will be the case with you, but it's better to be up-front with your mortgage person so that he/she can make sure you won't have any issues due to the new account (it's not like you'll be able to hide it anyway).

Also remember that your mortgage person is working for you (and they want you to get your mortgage - that's how they get paid) so it's generally best to keep in close contact with him/her on any financial changes until you have the keys in your hand.

What UncleB said...

Re: just approved for 15,000 line of credit

Anonymous — Thu, 30 Nov 2017 15:50:54 GMT

As Uncle B and Music said. I add Don't do it. I flip a lot of houses. I will repeat this again. Some lenders will put credit uptil every one leaves the closing. Do NOT get another card or make a large purchase til the day after the closing. I have seen the closing cancelled at the table. Just recently I was involved with a flip of a low end fixer up. The buyer the day before the scheduled closing applied for a Home Depot Card. (To pay for all the material) Lender pulled credit that night and cancelled the loan. Buyer is now homeless.

Re: just approved for 15,000 line of credit

Anonymous — Fri, 01 Dec 2017 03:04:36 GMT

Long story short, I applied for a Military Star Card during the escrow process because nobody told me it was a "no-no" to apply for new credit during that time, and this was a very recent mortgage. I read about how you should NEVER do this on this forum and immediately contacted my lender and told them what I had done. The guy jumped me for doing it and I told him he didn't say NOT to do this. After apologizing and telling me he thought he had because he tries to tell every potential borrower about this danger he asked me if I'd used it at all yet and I told him I hadn't, 7800 CL and zero balance. He then sent me some standard form via email and told me to say exactly what I told him and sign it digitally, which I did. Once he got it back he told me not to use that Star Card at ALL until after we closed and that it wouldn't be a "deal breaker" as long as I didn't apply for any other credit until 24 business hours after closing,

I closed ontime and there were NO ISSUES whatsoever. HTH :-)

Re: just approved for 15,000 line of credit

Anonymous — Fri, 01 Dec 2017 03:14:52 GMT

thank you for you input i did contact my lender, and she said it was okay and if i use it do not charge no more than 500.00 on it to show its a open line of credit.

the house isnt to be completed until January 28th of 2018 so say the middle of feburary. I will not be getting more credit, but after i sign that dotted line. i will be shopping for new house appliances.