topic Re: CC increase limit while during loan process? in Mortgage Loans

CC increase limit while during loan process?

Anonymous — Mon, 14 Apr 2014 13:28:56 GMT

Will it hurt if the limit on all my cards increase during the loan process? I'm out of underwriting with the bank and just waiting for USDA now. I asked for increases months ago before we started the loan process and got denied. Now after I have paid two off and had the other under 10% they all gave me an increase without me asking. The one that has a balance it only raised my payment a few dollars more and the other two are at 0 still so no payments. I know your not supposed to get any new debt during the loan process does this count? Two cards they only raised my limit by a few hundred dollars but the 3rd one raised it by $1000!

Re: CC increase limit while during loan process?

StartingOver10 — Mon, 14 Apr 2014 13:52:25 GMT

It doesn't hurt you to have your credit limit increased automatically by the cc's companies during the loan process.

But don't use the increased limits, just let them be there to show better utilitzation.

I don't understand how a payment can increase if you just got a credit limit increase unless you added to your balance, but you said you reduced the balance. Why did the payment increase?

Re: CC increase limit while during loan process?

mccallb — Mon, 14 Apr 2014 14:41:33 GMT

I would think, that as long as you didn't request the credit limit increases, you should be fine.

There are instances in which some people have TOO much credit, IE: someone who makes 25K a yaer with 75K of credit, potentially looks like they could run up enough credit to destroy their ability to pay. But a few hundred bucks here and there, and 1k on another, shouldn't put you anywhere near that risk.