Financing in North Hills>Question Details

Terry, Home Buyer in North Hills, CA

I recv'd a credit card Im not going to use, will this affect the amount of my loan? If so, will closing one of my credit card accounts help?

Asked by Terry, North Hills, CA Tue May 15, 2012

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Darlene Crompton’s answer
DO NOT...I REPEAT...DO NOT CLOSE ANY OF YOUR CREDIT CARD ACCOUNTS! The longer you have had them and have paid faithfully on them, the higher your credit FICO score could be as they take this as one MAJOR piece of information for your credit worthiness. Did you apply for this credit card? Does it have a high credit limit? It may or may not hurt you. But if it does, it won't be anything major. Just don't fill out any applications for credit as the lender may look at that card and what the credit limit is and think you will be going on a major shopping spree! Tell the lender what happened.
1 vote Thank Flag Link Tue May 15, 2012
Hi Terry,

Closing your credit will negatively affect your score. I have a local loan officer who can help you and answer all your questions about getting a loan.

Please contact me by email at jhon@jhoncordova.com or phone at 818-968-1691


Jhon Cordova Realtor®, Acredited REO Agent™
CA DRE Lic #: 01817265
Tel: (818) 968-1691| Fax: (818) 923-5201
Search for Homes at http://www.jhoncordova.com
0 votes Thank Flag Link Wed May 16, 2012
First talk to your lender closing a card may change your score?
0 votes Thank Flag Link Wed May 16, 2012
Hi Terry....
This type of question is best directed to your loan officer. "Receiving" a credit card is too vague for anyone to comment intelligently, and "closing one of my credit card accounts" may hurt way more than help as previously mentioned.
As a general rule, one should not apply for any other credit during the loan process or you may risk your approval. At the very least, you should figure on explaining any new credit received and if it changes your DTI figures, it could hurt your chances of qualifying.

Best wishes, Jim
0 votes Thank Flag Link Wed May 16, 2012
Just repeating what Dee said below......do NOT close any accounts!! Doing so will lower your score. Just let them sit there, and don't use them.
By doing that, you are showing that you are able to responsibly manage your available credit, and not run it up too high.

In addition, do not run out and buy any big ticket items.............it may be tempting to open an account at Best Buy and order that big screen tv you've had your eye on, but any recent large purchases, when trying to buy a home, can negatively impact your ability to qualify for, and close on the loan.

Best wishes!
0 votes Thank Flag Link Tue May 15, 2012
Thanks so much Debbie!
Flag Wed May 16, 2012
Ask your loan officer for guidance regarding your credit card. She has your credit report and should know what will help and what will hurt your credit score.
0 votes Thank Flag Link Tue May 15, 2012
Closing a card can sometimes impact your credit as much, if not more than getting a new one, contact a local lender before you do anything and get their advise. Beverly Howe, ABR, GRI, TRC, CIPS broker@floridabuyerbroker.com 1-800-283-7393
0 votes Thank Flag Link Tue May 15, 2012
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