Credit card use before settlement?

Question

I am buying a house and will go to settlement on 7/16. Question....I have been buying some furniture and other items on my credit card over the past few weeks. I haven't spent a ton of money, maybe $3,000-3,500 or so on the credit card. Question - do they check your credit again before settlement? This won't affect my credit, will it? All of these large purchases before I go to settlement? Thanks for any insight.

Answer 1

The quick answer is yes they can repull your credit prior to your closing. It all depends on the bank, how long your approval/commitment has lasted, etc, etc. If you have a strong credit history a few new credit tradelines should not affect your score, however if you only have a couple of tradelines and now add large amounts that do not compare to your other accouts this could cause some issues. Even more if you are late on a new account this will be an issue.

Even if you are not late on your payment and have good previous credit your scores, don't forget that every time another company checks your credit that could also increase your credit scores.

I know it gets confusing and there is no real way to guess what your score will do or how one/two acts will affect your score.

I would just say to hold off until you are into your house and then you can start buying everything you need.

Good Luck and congratulations

Answer 2

Yes, they will pull your credit again (if they haven't already) to make sure that your credit report has not changed drastically. If those purchases show up on your report depends on when the credit card company reports it to the credit bureaus. One easy way to check, is to look at your credit card statement due date, theres usually a 5 to 7 day period (grace period) between your due date and the update which begins your new billing cycle. Now, it also depends on the amount of cushion you have on your card as to how much your credit will be affected. If you have "maxed out" your card, then it will hurt your score. If you have used only about 30%(or below) of your card limit you will be fine. That's why banks and mortgage companies like to see credit cards paid down. It hurts your debt-to-income ratio if you have high balances.

Answer 3

Pay the single off and paintings with the different one. A write off will hit your credit checklist as a can charge off. The setlement might desire to coach because of the fact the debt being paid off besides the actuality that it substitute into previous due. then paintings with the 2d creditor to do a similar...will shop your credit

Answer 4

your deal is done do not worry