topic Credit card acct closure during underwriting?! Yes, No? in Mortgage Loans

Credit card acct closure during underwriting?! Yes, No?

Anonymous — Tue, 01 Mar 2016 00:01:54 GMT

Hey guys. I am in the middle of underwriting for a construction loan. I have a CreditOne Bank card that I absolutely cannot stand and sorry I even applied. I have had this card since June 2015 and want to close it. I pay the card in full each month. Some months they report a zero balance which is correct (like last month) and other months they wait until the end Of the billing cycle and post the finance charge of a whopping $1... They just reported the $1 a few days ago and my scores have dropped 4pts because they pick and choose what months they want to report that measly $1.

My question is would it be wise to close this card now in the underwriting stage? I am planning to close it anyways before June. Because I will not pay another $75 annual fee. What do you guys think? Yes or no?

Re: Credit card acct closure during underwriting?! Yes, No?

StartingOver10 — Tue, 01 Mar 2016 00:07:46 GMT

@Anonymous wrote:
Hey guys. I am in the middle of underwriting for a construction loan. I have a CreditOne Bank card that I absolutely cannot stand and sorry I even applied. I have had this card since June 2015 and want to close it. I pay the card in full each month. Some months they report a zero balance which is correct (like last month) and other months they wait until the end Of the billing cycle and post the finance charge of a whopping $1... They just reported the $1 a few days ago and my scores have dropped 4pts because they pick and choose what months they want to report that measly $1.

My question is would it be wise to close this card now in the underwriting stage? I am planning to close it anyways before June. Because I will not pay another $75 annual fee. What do you guys think? Yes or no?

No, do not close it now.

Don't make any changes to your credit profile until you close, are funded and have keys in hand. That means don't open accounts, don't close accounts, don't add to your debt, don't deplete your savings either.

Keep calm and carry on just the way you are now

Re: Credit card acct closure during underwriting?! Yes, No?

Anonymous — Tue, 01 Mar 2016 13:20:22 GMT

Just close it. It sounds like it's causing too much heartache and you've got bigger fish to fry. Your numbers look good and it shouldn't ding you too horribly. UW only cares about new credit. I've never heard of anyone being asked for an LOE or losing out on a mortgage because they closed a crappy predatory credit card during UW. And from what I've heard/read about CreditOne, you probably need to start the closing process now so it actually DOES close by June

Disclaimer: I've never dealt with CreditOne

Re: Credit card acct closure during underwriting?! Yes, No?

Mrsg714 — Tue, 01 Mar 2016 15:27:40 GMT

I also have a creditone account so I know the headache it is. I would have to agree with @StartingOver10 and would not close the account. At the very least, if it's bothering you that much then I would first discuss with your loan officer. I plan on closing my account with them when I have keys in hand. I'm not even as far into the process as you are, but I can't wait to lose them.