Credit score dropped prior to closing on house

[hyerolla41]

Hello,

 

I was pre approved for house and bank just accepted my offer last week, I received notification today that credit score dropped 28 points ONLY thing changed was alert saying "credit usage significantly increased 45%" it takes me to 608 score which is below 620 needed with lender for FHA. Spoke to loan officer and said yes it could affect me closing on home. My inspection is tomorrow so I have time, I paid off card today to $0 balance. Do you think I will be OK come closing?

[ManofB]

Where did the score notification come from?

[hyerolla41]

all 3 CB were affected EX TU and EQ, CC company is Capital One

[Krish]

What is your current limit on all cards and what is the balance on your cards.

 

Do not use your credit cards for more than 10% during Mortgage process.

[nysbadmk8]

Jesus, I hope you have another card reporting a balance, 0% doesnt help you either. And paying the card now, wont effect your score till it reports next to the CRAS

[archimaybe]

You may be too late to fix your FICO before tomorrow unless your statement cut date(s) for your cards are tomorrow. To fix things for next month, do this:

 

(1) Make a list of all your revolving accounts that are currently reporting to the bureaus, and the amounts that they are reporting.

 

(2) For each card on the list, determine the statement closing date (NOT the due date) and note it down. Hopefully, one of your cards will cut a statement (and hence report the new balance to the bureaus) shortly.

 

(3) Maintain a $0 balance on all of your cards except for the one that will have the next statement cut. On that card, immediately charge a $2 to $5 purchase and leave it -- the CRAs should report the new balance within a few days of the statement. (If you have all your cards reporting at $0, you will get dinged.)

 

This will get you close to maximizing your score with respect to utilization.

[chugs102]

rookie mistake.

 

your scores tanked because of increased utilization.

 

if Cap1 is the only credit card that you have, I suggest making a $2 charge immediately. Hopefully, this will all be updated by the time of closing.

 

If it's still a clusterfck, your loan office will have to work with you. They may ask you to contact CapOne, explain the situation and update the reporting to CRA.

[shifter]

I did this exact same thing my first home purchase many years ago. No one told me about not letting balances report. I had low limits because I was young and PIF every month but I didn't know about the second pull right before closing.

 

Required the LO to find me a new lender that was subprime, higher interest rate and took another month to close.

 

Ahh the joys of ignorance.

[Headwaters44]

I don't want to be bearer of bad news, but I just paid off both a Chase and a Capital One CC to decrease my util for a future mortgage app. It was 2 weeks until the statement closing date for both so I called them to ask if they would humor me and report to the CRAs early. Chase said sure and took care of it right away. Capital One however stonewalled me from the bottom up. When I asked for a manager and complained and threatened to take my business elsewhere permanently they kept repeating themselves, "I'm sorry our reporting to the CRAs is automated and takes place several days after your statement date, there is nothing we can do"

 

Maybe if you explain your situation they will be understanding and help. Good Luck!!

[shifter]

Back on topic, OP, immediately call the C1 EO.

 

You might have some luck getting them to report early.

[mj]

Have you talked to your mortgage lender about doing a Rapid Rescore? The folks that do it usually have a "what if" calculator that can help you with "if I pay xxx on yyy card what will the score be" kind of thing.

 

You're right on the cusp so a little change may make a big difference - worth looking into.

http://finance.yahoo.com/news/rapid-rescore-fix-credit-score-110000830.html

[nysbadmk8]

Have you talked to your mortgage lender about doing a Rapid Rescore? The folks that do it usually have a "what if" calculator that can help you with "if I pay xxx on yyy card what will the score be" kind of thing.

 

You're right on the cusp so a little change may make a big difference - worth looking into.

http://finance.yahoo.com/news/rapid-rescore-fix-credit-score-110000830.html

 

 

Those cost $$$$

[mj]

Yeah, but the "what if" analysis is free (last time I did it) ... then you can decide to spend the $29 on the 1-2 accounts that will make the score go up enough. In this case, probably money well spent if that means not losing the house. Just one of the options out there ...

[mizliz1011]

can you credit back something that you charged or create some new activity on your report? can a bank officer do something if you have a checking account there, make your check bounce or something? I just paid down my credit cards, not to -0- and all of my scores dropped. Good luck.

[parisamour]

Rapid rescore. Ask your LO about it.

[parisamour]

can a bank officer do something if you have a checking account there, make your check bounce or something?

I would think that an NSF would not be good at this time.

My LO required no NSFs in last 24 months.

But, maybe I am misunderstanding something. I have been awake for almost 20 hours.

Edited September 23, 2014 by parisamour

[nysbadmk8]

can you credit back something that you charged or create some new activity on your report? can a bank officer do something if you have a checking account there, make your check bounce or something? I just paid down my credit cards, not to -0- and all of my scores dropped. Good luck.

I'm not understanding. Why would you bounce a check...

[s4d]

The Rapid Rescore is the way to go. You'll be fine.