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Credit Cards & a Mortgage

Little_Lulu
Contributor

Credit Cards & a Mortgage

Hello!

 

My mom is, hopefully, applying for a mortgage within the next few weeks. I have a few questions tho - Both my sister and I have our own credit cards (2) that we added my mom as an authorized user to. The balances are like 30%. We can easily pay them off. I just want to know if these will even affect my mom given that they really aren't hers? Do our cards calculate into her DTI and credit score? And also, if her credit cards are at $0 can I keep mine at like $20 to give her score a boost? I know it's bad to be at $0 on all cards. Or should my card/my sisters card be at $0 and hers be at say $20 for the most points?

 

Thank you.

Message 1 of 3
2 REPLIES 2
Revelate
Moderator Emeritus

Re: Credit Cards & a Mortgage


@Little_Lulu wrote:

Hello!

 

My mom is, hopefully, applying for a mortgage within the next few weeks. I have a few questions tho - Both my sister and I have our own credit cards (2) that we added my mom as an authorized user to. The balances are like 30%. We can easily pay them off. I just want to know if these will even affect my mom given that they really aren't hers? Do our cards calculate into her DTI and credit score? And also, if her credit cards are at $0 can I keep mine at like $20 to give her score a boost? I know it's bad to be at $0 on all cards. Or should my card/my sisters card be at $0 and hers be at say $20 for the most points?

 

Thank you.


Pink FTW!

 

I'd go that way absolutely: the AU's will count under mortgage trifecta for FICO purposes, and minimum payment might get counted against DTI too if they're not $0 though it's easier to discount that as that's a lender calculation rather than a FICO one.  No sense making it more complicated for the LO / UW than it needs to be.

 

Better to take the known option for FICO maximization and let her tradeline report a balance instead of yours.  AU shouldn't go sideways under FICO 04/98 but that'd be a shame to have a mortgage complicated by that fact if it did.  Just not worth risking on one of the biggest purchases of your mother's lifetime.

 




        
Message 2 of 3
bigbodybenz
New Contributor

Re: Credit Cards & a Mortgage

I would think as long as you and your sister is in good standing with your cards and keeping everything under 30% this should not hurt you mothers chances at at good pre approvel amount and rates. good luck

Message 3 of 3
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