B of A signed us up for a $7500 Visa card we did not ask for- will this hurt our upcoming mortage application?

Question

I went into the branch about a month ago and the teller said I had the old type of checking account and they have a newer version with no extra fees or anything and asked if I would like to convert it over. I said sure, as long as there are no strings attached and he said there weren't. Then out of nowhere, my wife gets a Bank of America Visa card sent to her with a $7500 limit that neither her nor I ever asked or applied for. We called B of A and they said it was requested the same day we were in the branch. In other words, we were scammed. The reason we are concerned is because we are about to apply for a mortgage. Overall, my wife and I have good credit scores (around 700) but we have some high credit card balances. Without this new card, our balances are about 65% of out total limits. With the new card, our balances will be about 40% ouf our limits. Is this going to hurt our mortgage application or not? Should we cancel the card?

Answer 1

talk to an experienced mortgage lender. only he/she willbe able to give you accurate advice on which way to go on the cancellation.

Answer 2

I would check with the credit bureau first because cancelling may have an impact but probably yes. I would also report the bank. They cannot sign you up for something that you did not request. Obviously it was inn the small print somewhere that you didn't read thoroughly. I am guessing if you called them on this they would tell you the same thing. But I would get rid of the credit card before it becomes tempting to use it.

Answer 3

YES - hurt.
YES - cancel ASAP.

If you had those high balances on other cards I am surprised that B of A gave you a credit card. Maybe it was a debit card that will not impact your credit score.

Answer 4

It probably will inprove your credit chances as long as you do not rack up a big balance. It shows you have good credit.