Paying off credit cards

eva322 · ‎07-16-2013

So my mortgage company asked me to close most all of my credit cards so that I can get my DTI to an acceptable percent. So my question is does anyone no how much my credit scores will be affected I had to close 6 cards.

nicholasyud · ‎07-16-2013

Why the mortgate company want you closed all your credit card ???? that's kinda weird

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Kutuzov · ‎07-16-2013

In the short term it won't depending on your util. What matters is not really how many cc you got open (up to certain minimun), but the util. If you close some accounts that might might not change your util. if you are applying for a mortgage try to have 0% util on all your credit cards until you close and sign the papers.

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myjourney · ‎07-16-2013

@nicholasyud wrote:
Why the mortgate company want you closed all your credit card ???? that's kinda weird

+1 never heard of this policy to approve a mortgage...

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?

Kutuzov · ‎07-16-2013

@nicholasyud wrote:
Why the mortgate company want you closed all your credit card ???? that's kinda weird

There's 2 things, one he might have way too mych credit for his income, and they are worried he might go crazy and the house will end with a lien, and 2 he might have a high util, and they want some of the creditors to be taken care of before they are willing to lend him the money. It's just my guess since I don't know the exact situation, either he got too much credit for his income or has too high util, or both or some other factor I'm missing.

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SnackTrader · ‎07-17-2013

I would look for a new lender. Mortgage companies are hit and miss, IMO. Go to a bank or credit union and see if they can get you a loan without closing your cards. But you will almost certainly have to pay your cards down to $0 or close to it if you carry balances.

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GatorGuy · ‎07-17-2013

Close 6 cards? What does your credit profile look like? That sounds crazy to me because unless you are severely over extended right now, that is an outrageous request by a mortgage company.

BearsAndTurtlesRtheBest · ‎07-17-2013

@Kutuzov do all mortgage lenders look and make sure that you dont have more credit than what you earn?

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armbenderc · ‎07-17-2013

I would lol@ lender and move on. Unless that is the only lender that approve you. If that the case it's not the right time for you to buy.

2013 Approvals: Discover IT - 3/1, Amex BCE - 3/4, CSP - 5/4, Barclay Ring - 6/12, BoA Privileges Cash - 6/27, Citi TY Preferred - 8/6, OCCU Duck - 11/4, USBank (Cash+) - 11/22, Wells Fargo - 12/21, Nordstrom - 12/29

12/19/2013, $100k+ Available Credit. Total Util: 0-1%

09Lexie · ‎07-17-2013

Closing that many cc's seems odd to me. What is your current util? Are you perhaps buying too much house ?

Closing Credit Cards

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