topic Re: Maxed Out Credit Card Hurt Our Mortgage Chances in Mortgage Loans

Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Tue, 17 May 2016 20:48:23 GMT

Hello,

I'm new to this so bare with me. I was so called "preapproved" by Quicken for a home loan the beginning of this year. I sat on the "preapproval" for some weeks and finally decided to go ahead and start looking for a house. A month or so passed since the credit check with them and in the mean time my credit card was maxed out which has caused my credit score to drop about 20-30 points.

I paid it off about a month ago. My credit report so far says that the account is maxed out. How long will it take before the credit bureaus get the updated information and my credit score increases? I really want to used another lender.

Please Help

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

dragontears — Tue, 17 May 2016 20:59:58 GMT

rilniceguy wrote:

Hello,

Please Help

Generally within a week or so of your credit card's statement

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Tue, 17 May 2016 21:01:15 GMT

It just depends on when the credit card company reports to the bureaus. If it's been about a month I would imagine they should be reporting soon. You could call and ask when they report. If you have any other questions just let me know.

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Tue, 17 May 2016 21:19:10 GMT

I just called and they said they are due to report on the 21st. Any idea how many points i may gain or if the simulators are close to accurate.

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Tue, 17 May 2016 21:31:09 GMT

@Anonymous wrote:
I just called and they said they are due to report on the 21st. Any idea how many points i may gain or if the simulators are close to accurate.

It will be hard to tell how many points you will gain when the reports update.

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Tue, 17 May 2016 21:39:01 GMT

Impossible to really tell, but you should get back your points that you lost for the high utilization as utilization has no memory. However, it is unlikely that everything stays the same as far as your credit lines, so it is pretty impossible to predict just how much of a score increase you will receive.

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

mynameainttracy — Tue, 17 May 2016 22:00:41 GMT

We have one credit card that we use and pay in full every month. Last month we forgot to pay it off before the statement period ended and we both had a $3000 credit card increase on our reports. Both my husband and I had 20 point score drops. The next month when the balance was gone we got the 20 points back.

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Tue, 17 May 2016 23:49:07 GMT

That's what I'm hoping happens. Thanks everyone for your input!!!

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Tue, 17 May 2016 23:55:05 GMT

best of luck!

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Wed, 18 May 2016 00:26:26 GMT

Thanks! I'll post updates next week.

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

StartingOver10 — Wed, 18 May 2016 19:29:24 GMT

If you are going for an FHA loan, I strongly recommend staying away from Quicken Loans.

Go to a lender that has experienced and qualified loan officers and not "application takers". There are many all across the US that are good. Stay away from big box banks too (Chase, Wells Fargo, BOA).

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Thu, 19 May 2016 01:28:50 GMT

Quicken is the worst I specifically asked the guy not to run my credit at least twice and he ran it anyways I don't even know how he got my SS number I never even gave it to him

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Wed, 01 Jun 2016 15:01:56 GMT

After all the waiting my score went up by more than 40 points because of pAying my card to 4%. Lesson learned

Re: Maxed Out Credit Card Hurt Our Mortgage Chances

Anonymous — Thu, 02 Jun 2016 03:12:35 GMT

Congratulations! That was a significant score jump! You seem to be well on your way! Best of luck.