Should I close/ask for a limit increase

[4MER2R0]

Well, it may have gotten there already.

I paid off 8k in debt this month and I don't think those payments have shown up yet.  I guess I'll have to wait and see.

[Anonymous]

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@4MER2R0 wrote:

Well, it may have gotten there already.

I paid off 8k in debt this month and I don't think those payments have shown up yet.  I guess I'll have to wait and see.

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Yes, that will improve it.  Keep us posted on the updated scores...

[SouthJamaica]

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@4MER2R0 wrote:

Its a Chase Freedom Card.

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Don't do anything with it, just let it be.

Your scores are excellent so don't fret.

If your other cards are soft pulls it can't hurt to ask for CLI's on them.

[4MER2R0]

Will do.

I think one thing that doesn't help is that we already went through the mortgage application process.  We're building a house and the first builder we were using had some serious problems (unable to deliver on a couple of items specified in the contract).  So in essence I have done the pre-approval process, and we had already started the final approval process on the first house plus the pre-approval process on the second house.  

[hpotterfan77]

Just as an FYI (from a mortgage underwriter), to get that prime rate on the mortgage, the cap on a credit score is generally 720-740.  Anything from 740 and up is going to be the same.

[Anonymous]

Do not apply for any credit before you apply for your mortgage loan. As a matter of fact do not apply for credit during the entire process of applying for a mortgage loan. My husband and I bought a house in July and that is the last thing you want to do. With your scores you should be able to get a really good rate. 

[Anonymous]

Mortgage lenders prefer not to see you seeking new credit in the the most previous six months from my experience and contacts with mortgage lenders. Note, it is not a deal breaker but it is cleaner and easier (usually). Sit it out for three months if an HP is involved.

[Anonymous]

I wouldn't ask for a cli especially with a HP.  My brother is closing on a new house in a few days and they monitored his credit very closely and he was advised not to do anything with his credit cards or credit profile until the house closed. 

[NRB525]

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@4MER2R0 wrote:

Will do.

I think one thing that doesn't help is that we already went through the mortgage application process.  We're building a house and the first builder we were using had some serious problems (unable to deliver on a couple of items specified in the contract).  So in essence I have done the pre-approval process, and we had already started the final approval process on the first house plus the pre-approval process on the second house.  

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This is a bit confusing. Are you building one house to move into it, or that contract is up in the air now and you are pre-qualifying for a second house? Are you intending to close on the first house at all? Are you intending to buy two houses? (seems unlikely, but IDK).

I have a Chase Freedom card at $1.5k and it's fine at that. To get more accurate advice, could you list out the other three cards, bank and brand. The handling of CLI varies by bank.

[takeshi74]

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@4MER2R0 wrote:

I would like to get my scores to the 800's

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Why?  What are you looking to accomplish by doing so?  Not claiming that you don't have a valid reason,  Just asking to understand.

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@4MER2R0 wrote:

My question is should I either close the card with the low balance or ask them for a limit increase?  I am going to be applying for a mortgatge in 2-3 months and would like to get the prime rate.  Because the card is not my oldest card and the balance is so low I don't now if the card helps, hurts or (I suspect) doesn't make much of a difference. 

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See the Closing Credit Cards thread linked in the Helpful Threads sticky and do the before-and-after revolving utilization math.  If you want to play it safe, I'd recommend not doing anything until your mortgage is finalized.

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@4MER2R0 wrote:

Its a Chase Freedom Card.

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Don't bother with Chase.  Not only is it a hard pull but odds are probably against you.  If Chase really likes your credit profile you'll get autoCLI's.

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@hpotterfan77 wrote:

Just as an FYI (from a mortgage underwriter), to get that prime rate on the mortgage, the cap on a credit score is generally 720-740.  Anything from 740 and up is going to be the same.

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But keep in mind that mortgage lenders generally don't use FICO 8.  Always consider the specific scoring model and CRA.  If you're relying on FICO 8's you'll probably be a bit disappointed when your mortgage lender pulls your scores.  Never rely on a score generated by one model to detemrine a score generated by a different model.