Mortgage in UW - Paid off Credit Card. Score Dropped 30 Points

[Anonymous]

Has anyone had any similar scenarios?

I am currently in the process of building a home. I received my loan pre-approval with conditions. One of my conditions was to pay off my credit card balances, which I did. As a result, my credit score dropped 30 points. Since the home building process takes a little longer, my credit scores will expire after 120 days and I’ll have to pull them again. Has anyone had any luck reversing this issue? I plan to add a small balance in hopes of my scores going back up.

Currently Credit Card Balances:
-NFCU Flagship $79 to $0
-NFCU Go Rewards $0
-American Express Platinum (Charge Card) $18
-American Express Delta Gold $0
-Express Credit Card $0

[Revelate]

---

@Anonymous wrote:
Has anyone had any similar scenarios?

I am currently in the process of building a home. I received my loan pre-approval with conditions. One of my conditions was to pay off my credit card balances, which I did. As a result, my credit score dropped 30 points. Since the home building process takes a little longer, my credit scores will expire after 120 days and I’ll have to pull them again. Has anyone had any luck reversing this issue? I plan to add a small balance in hopes of my scores going back up.

Currently Credit Card Balances:
-NFCU Flagship $79 to $0
-NFCU Go Rewards $0
-American Express Platinum (Charge Card) $18
-American Express Delta Gold $0
-Express Credit Card $0

---

You need a small balance on one of your cards, the NFCU flagship would be fine for that.

All zeros is a problem and the Platinum doesn't count on FICO 04 (2/3 of the algorithms) and shouldn't be used for that.

[Anonymous]

Good info, thanks! Since the NFCU flagship card just reported, I’ll probably make a small purchase on the Delta Gold before the statement period closes. Hopefully, the new balance will be reported and my credit score will go back up.

[Revelate]

---

@Anonymous wrote:
Good info, thanks! Since the NFCU flagship card just reported, I’ll probably make a small purchase on the Delta Gold before the statement period closes. Hopefully, the new balance will be reported and my credit score will go back up.

---

YW, yeah either Flagship or the other NFCU card, or Delta are all fine for what you need; not the Amex charge card (Plat) and I wouldn't do it on the Express card either (retail, which may count weirdly on some algorithms so wouldn't leave it to chance).

[Anonymous]

AMEX Credit Bureau number is 800-874-2717

Make your charge, let it post, and call them and ask them to report.

I just zeroed a balance on one of my cards, asked that they report, and it was on EX the very next day.

[Anonymous]

***Update***

I did exactly what you suggested and my credit score went back up 30+ points. Thanks for the advice. One step closer to closing on my first home. 

[Anonymous]

When in doubt.... pick a different lender.  Telling someone to payoff ALL of their CC's isn't a positive scoring experience.  The only reason I can' think of that they told you to pay ALL of them is the monthly payments are calculated into your DTI figures and reduce the amount of your mortgage you qualify for.  

[Anonymous]

Actually, they didn’t. That was my fault. I assumed that paying down my balances even more would help me more than hurt me. Lesson learned.