Account sold while in underwriting!! o-O

[Mona_75]

Somebody please talk me down! I received a credit alert today from myfico. My score dropped to 666 due to a Fingerhut account that was sold. This was a 1 year old tradeline with 0 lates. Fingerhut recently sent a letter notifying customers that Metabank would no longer be the "bank" associated with this acct. I didnt sweat it to much....no big deal for me either way

Well, it looks as if they updated my CR today with info that the acct was sold or transferred. I'm assuming that this tanked my score because fico is scoring this like a closed acct! What can I do? I am scheduled to close on July 30th and I am currently in underwriting!!! My scores were TU-691, EQ 680, EXP 640. My credit was last pulled mid June but when they pulled, my EQ did not show up for some reason. My LO decided to go ahead and submit the file using the TU and EXP score. Even though EXP was the lowest, it was a 640 which surpassed the 620 mid score requirement. I do not know if they will pull again before closing but I am worried that this decrease will be a problem.

Does anyone know if this was appropriate to update this way? Could they not leave the Metabank tradeline as is and ADD the new banks info beginning next month? I wasnt sure if this would be best answered here or in rebuilding but someone has insight on how to fight this reporting or whether I should worry for underwriting.

[Familywantsahouse]

This just happened to me. Luckily when the "new" account holder reported the score went right back up since it doesn't impact the AAoA (at least our student loans didn't they still show the same date opened with the new account.)

I freaked though because it brought my husband from 7 trade lines to 2. Hopefully the new account reports fairly quickly and you should be fine...

[tbolt2]

I received the same alert, but no change in score.

I'm not so sure the account being sold or transferred to another bank did it. The listing on my credit report is still considered a positive tradeline - open two years, zero balance, never late.

The credit limit of 850.00 reported to Equifax as the high balance. The credit limit itself was blank....my utilization and total credit limit took the hit. Unfortunately, my utilization is so high right now, it didnt affect my score any more....

[Sd1234]

I received the same alert but no change in my score at least not yet.

[Mona_75]

Thanks for the replies everyone. I guess the impact on score is different depending on other variables. I am hoping to regain the points once the Webank starts reporting! I will update if this impacts my loan in anyway or if I find out any info that may be helpful to anyone else

[pizzadude]

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@Mona_75 wrote:

Somebody please talk me down! I received a credit alert today from myfico. My score dropped to 666 due to a Fingerhut account that was sold. This was a 1 year old tradeline with 0 lates. Fingerhut recently sent a letter notifying customers that Metabank would no longer be the "bank" associated with this acct. I didnt sweat it to much....no big deal for me either way

Well, it looks as if they updated my CR today with info that the acct was sold or transferred. I'm assuming that this tanked my score because fico is scoring this like a closed acct! What can I do? I am scheduled to close on July 30th and I am currently in underwriting!!! My scores were TU-691, EQ 680, EXP 640. My credit was last pulled mid June but when they pulled, my EQ did not show up for some reason. My LO decided to go ahead and submit the file using the TU and EXP score. Even though EXP was the lowest, it was a 640 which surpassed the 620 mid score requirement. I do not know if they will pull again before closing but I am worried that this decrease will be a problem.

Does anyone know if this was appropriate to update this way? Could they not leave the Metabank tradeline as is and ADD the new banks info beginning next month? I wasnt sure if this would be best answered here or in rebuilding but someone has insight on how to fight this reporting or whether I should worry for underwriting.

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A Credit card being closed will only ding your FICO score if your utilization increases as a result of losing the CL, which might be what happened here.    See this sticky thread:   http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

Once the new account reports with the credit limit I would that your score will return back to where it previously was, or fairly close at least.

[Booner72]

AHH, this explains what happened.  I asked in Understanding your Score if the new account will help our scores because it will add length to our AAoA since it backdates...at least that is my assumption of what will happen.  I never got a letter though.

I'm sure that the other poster is correct that it impacted your utilization.  Can you pay down 850 somewhere?  I do believe they will repull your credit since they couldn't pull EQ - I'm surprised that your loan went that far without having that score.  Why couldn't they get the EQ?

Your middle score is now going to be 666 providing the other two have not changed.  This is still going to be okay on that end.