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Would an increased balance on an AU card mess up a mortgage approval?

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1LostArk
Regular Contributor

Would an increased balance on an AU card mess up a mortgage approval?

Currently looking into getting preapproval with a friend as co-borrower. Most of my friend's AAoA is from being an authorized user on their parents 20+ year old Macy's card, which currently has a $0 balance. Say we got preapproval, but then the balance went up on the Macy's card — would that put the preapproval in jeopardy? Thanks!


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1 REPLY 1
Mortgage-Specialist
Established Contributor

Re: Would an increased balance on an AU card mess up a mortgage approval?

If the primary user were to heavily increase the balance it can possibly effect you. For example if you weren't able to obtain a contract on a house and another credit pull needed to be accomplished - your score can decrease and your minimum payment on the card will increase as well. 

 

Most lenders would tell you not to touch your cards but If debt ratio isn't tight and if used wisely, I wouldn't worry about any issues. 

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