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accepting pre-approved credit card offers while in escrow?

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Regular Contributor

accepting pre-approved credit card offers while in escrow?

I have a pre-approval and purchase contract signed. 

Waiting for the appraisal and closing on 1/11. 

 

My score just went up 20 points to 650 after paying a large sum on 2 cars last month.

My util is currently 40% on $9500 limit.

 

I received a pre-approved offer from First Premiere Bank / Mastercard-  says between $500 - $1000

I received a pre-approval from Build / Master Card - $500

 

Do I ignore these offers completely? Does it impact my credit score if I do or impact the loan application underwriting process?

 

Accepting them would increase my credit to $10,500 + and lower my util and thus my DTI. 

 

 

 

 

 

 

 

525 score as of 9/2015 --- only way to go is up!
12 REPLIES 12
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Valued Contributor

Re: accepting pre-approved credit card offers while in escrow?

My advice is do not do anything that could upset the apple cart. Wait until the loan is closed and you have your keys. 

Message 2 of 13
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Frequent Contributor

Re: accepting pre-approved credit card offers while in escrow?

Dont accept offers until after close. You will take a hit on inquiry and average age of account in addition to writing explanation letter to loan officer. Just not worth the headache or risk.
Message 3 of 13
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Moderator Emeritus

Re: accepting pre-approved credit card offers while in escrow?

No way in hell.

 

They'll still be there when the mortgage closes, and they'll come out of the woodwork when it reports (or they did for me at any rate, suddenly got spammed by Discover, Citi, and others).




        
Message 4 of 13
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Moderator Emerita

Re: accepting pre-approved credit card offers while in escrow?

Agree with the others. Don't take the risk of dropping your scores due to the new accounts (if you accepted them). Once you close, you will get more offers - and they will be better one's too. I have found the new card hit + the reduction in AAoA is more likely to drop the score for six months or so. Those factors appear to weigh more heavily than the decrease in utilization you would receive. Don't do it. 

Message 5 of 13
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Frequent Contributor

Re: accepting pre-approved credit card offers while in escrow?

I agree with everyone while in the process i wouldnt do a single thing outside of paying down uti

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 6 of 13
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Established Contributor

Re: accepting pre-approved credit card offers while in escrow?


@Sk323i wrote:

I have a pre-approval and purchase contract signed. 

Waiting for the appraisal and closing on 1/11. 

 

My score just went up 20 points to 650 after paying a large sum on 2 cars last month.

My util is currently 40% on $9500 limit.

 

I received a pre-approved offer from First Premiere Bank / Mastercard-  says between $500 - $1000

I received a pre-approval from Build / Master Card - $500

 

Do I ignore these offers completely? Does it impact my credit score if I do or impact the loan application underwriting process?

 

Accepting them would increase my credit to $10,500 + and lower my util and thus my DTI. 

 

 

 

 

 

 

 


Let's put it this way: My score is almost 150 points higher then yours and I wouldn't do that. Why? Because it's not just your score, it's that it looks like you are getting funds from many places and that looks like risky behavior to the mortgage servicers


Last App 10/14. FICO's: AMEX Ex 846, BarclayTU08 815.FAKOs:CreditKarma 775,CS score 771.BofA 5400,Target $5000,Barnes $8500,Amex $22k
Message 7 of 13
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Regular Contributor

Re: accepting pre-approved credit card offers while in escrow?

I agree with the great advice everyone gave you as you are way too close to closing time.

 

Personally I did exactly what you want to do. I applied for an Amex and a chase freedom unlimited right after getting approval to start my build, so I had 6 months to recover. I gained an additional 36k in available credit and my score eventually went from 680 mid mortgage to a 725 mid mortgage. I spoke to my loan officer whom I asked to check with her underwriter to be sure it would not create an issue as I only wanted to improve scoring and move from FHA to conventional. I would add that they are aware of my plans to cancel all my junk credit cards after closing.

 

if I can I would strongly suggest you check the credit card forums and research soft pull CLI credit cards to determine if you have credit cards that you increase to further reduce your DTI. If it's possible you may be able to squeeze some added points. Add that to paying down your current debt, you'll be in great shape!

 

Best of luck!

Began my personal credit Renaissance April 2014 with scores I the 590's, thanks to all your experiences myfico - all mortgage scores in the 730's.
Message 8 of 13
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Frequent Contributor

Re: accepting pre-approved credit card offers while in escrow?

Plz dont be tempted to add soft pull cards either. The age of accounts will drop and you dont have a lot if wiggle room in your score. Just pay down util of you can, you'll see bigger gains with that.
Message 9 of 13
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Regular Contributor

Re: accepting pre-approved credit card offers while in escrow?

Just to be clear, I was not saying apply for new credit... I was saying check to see if OP current credit cards offer soft pull for limit increases to affect DTI.

Began my personal credit Renaissance April 2014 with scores I the 590's, thanks to all your experiences myfico - all mortgage scores in the 730's.
Message 10 of 13
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