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Will a card closed by the issuer be bad for getting a mortage loan?

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Regular Contributor

Will a card closed by the issuer be bad for getting a mortage loan?

Hi,

 

I don't have a closed card but I have a few that I haven't used for about 3 months. I'm doing my mortage preapproval in a few weeks and I only have one card with a balance on it for 20.00. Say if it takes me a few months if not longer to find a home I like and a card would happen to get closed for non use, will that cause my score to drop? I don't wanna put anything on those other cards until I close on a home.

3 REPLIES 3
Moderator Emeritus

Re: Will a card closed by the issuer be bad for getting a mortage loan?


@joesef wrote:

Hi,

 

I don't have a closed card but I have a few that I haven't used for about 3 months. I'm doing my mortage preapproval in a few weeks and I only have one card with a balance on it for 20.00. Say if it takes me a few months if not longer to find a home I like and a card would happen to get closed for non use, will that cause my score to drop? I don't wanna put anything on those other cards until I close on a home.


Non-issue.

 

Also accounts don't get closed generally with a few months of non-use TBH; even the once every 6 months or so I put a charge on some SD cards is probably overkill safety bear style.




        
Message 2 of 4
Regular Contributor

Re: Will a card closed by the issuer be bad for getting a mortage loan?

Thanks for the reply.

Generally I would use all of my cards every few months to keep them active and to have them report as paid on time etc to help my score. I like my score where it's at right now for a home loan but if it drops any it would put me down some and that could hurt me interest wise and not qualify for the loan I'm wanting. I want to continue having the AZEO report but if many months go by looking for a home and I go past the "6 month" non use thing I was concerned I could take a hit for that.

Message 3 of 4
Valued Contributor

Re: Will a card closed by the issuer be bad for getting a mortage loan?

Use those cards for Gas or groceries and just pay them off before the stmt cutoff. That way they won’t close anything.
Message 4 of 4
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