Home Buying in Dallas>Question Details

Ben, Home Buyer in Dallas, TX

I have a ding on my credit a bank of america card in credit counseling.

Asked by Ben, Dallas, TX Fri May 9, 2008

I have a 660 credit score with a ding from Bank of America. They raised my rate to 30% because I had a high balance. So instead of paying 30% I dropped it to 10% via credit counseling. Should I pay off the 3600$ balance before even getting pre approved as it may take 90 days to get off my record, or do lenders look at this as a positive vs negative.

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A 660 credit score should get you a loan with a decent interest rate. Get with a loan officer through a broker or banker. They will check into your credit, don't be surprised if there score differs from the one you are showing.
Web Reference: http://www.bigdrelo.com
1 vote Thank Flag Link Fri May 9, 2008
Totally a lenders call on this one! (probably shouldn't try to get approved thru BofA however...smile)

Good Luck !
1 vote Thank Flag Link Fri May 9, 2008
The limit was 5000. I have other cards but pay them off monthly. I mostly concerned with the fact the account is in credit counseling, which some lenders look at as positive because I did not charge it off. Other lenders look as it as a negative because I needed "credit counseling". I mostly did it to get the 10% rate as they raised it to 30%. I can afford to pay it off but I don't know if it is better to have the money toward a down payment. Also I don't know that if I pay it off that the credit counseling will go away before or after 90 days. I bought a new jeep a few months ago and some lenders looked at it as bad while Chase thought it was good and gave me a 72 month 7.5% loan for 30k. I make over 65k a year so I have the funds to pay it off but then will not have 5% to put down unless I wait 6 month but then I'll be in another lease. I also just bought a ring for my finance so there is that too but I am going to pay that off within 6 months. So I should have money for a down payment and pay off all my cards except the BOA because that has the lowest interesr, but its the one and only with CC counseling...
0 votes Thank Flag Link Mon May 12, 2008
IF your credit scores are 660 paying it off will increase your scores. However what do your other balances look like on your other debit? It may not raise your scores enough?

I use to own a credit repair company lectured for 10 years on the subject matter, I am a Dallas realtor, Dallas home mortgage loan officer, however I need additional info.

Lending has changed over the past several months many more questions need answer too assist you

Contact my office
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun May 11, 2008
Ben, You really need to sit down with loan officer and look at the preapproval now. If the balance takes all your reserves, probably better not to pay it all off. It also depends on the limit of the card. If it was $3000 then you'll need to reduce it. If it was $10,000 it may not matter. So there are lots of variations of what will improve the score and your ability to get a loan. Probably better to meet with the loan officer now, and a good one will tell if you can get a loan and at what interest rate, or if there is anything you need to work on to get the loan or a better interest rate. There are now some breaks or penalties at different levels and scores.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri May 9, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
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