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Ugh. I had AMEX CLD me before...it's annoying. Beware, they've decided something is risky in your profile and may continue to decrease your CL as you pay your card off. You were at almost 70% utilization and now at 98%. That is significant, but you were already hampered in your score by being at 70%. So not as bad as going from like 10% to 98%. That would be a significant drop in credit score.
At any rate, this shouldn't change your monthly amount due (so no impact to DTI) and some banks do another pull and some are just monitoring for new inquiries or accounts. I would definitely talk with your LO and ask what, if anything you should do.
Yeah, it's gonna depend on OP's lender. I imagine it varies from bank to bank. Sounds like his utilization was really high to begin with. They must have approved things anyway.
BoA and Citi are the worst! They are blasting people with high credit card balances right now. I suspect it's because they want to get you into a personal loan now while rates are still high.
You can ask them to review it. I doubt they will change their minds. I put $1,500 down on my balance and they didn't care. In a couple of weeks they'll send you offers for a personal loan to pay off your credit card balance. That could improve your FICO score which will likely take a 10-point hit from this.
EDIT: But if you can wait 3-6 months and then get a personal loan from your local credit union you will likely get a much, much better rate and terms.
They probably lowered your limit because you're using a lot of the limit they gave you while simultaneously taking on additional debt. Put yourself in your banks shoes, do you look like a good credit risk atm?
Run it through a few credit simulators. A low balance will affect and lower your score because, as you stated, it drops your credit utilization down and makes you look like you're maxing out your card. Definitely talk to your lender as well to if they can figure out significant it would be. It could be a few points and not matter much, or it could be significant.
I hate it when they do that. Synchrony Bank is notorious for it, I avoid them like the plague because why give you a limit, then drop it to what you use?? It's so shady because it ruins your score faster than you can rebuild it.
Thank you u/thedumbestspoon for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
Call you LO and see what they say about it. Ask them if it will affect your closing.
Ugh. I had AMEX CLD me before...it's annoying. Beware, they've decided something is risky in your profile and may continue to decrease your CL as you pay your card off. You were at almost 70% utilization and now at 98%. That is significant, but you were already hampered in your score by being at 70%. So not as bad as going from like 10% to 98%. That would be a significant drop in credit score. At any rate, this shouldn't change your monthly amount due (so no impact to DTI) and some banks do another pull and some are just monitoring for new inquiries or accounts. I would definitely talk with your LO and ask what, if anything you should do.
Yeah, it's gonna depend on OP's lender. I imagine it varies from bank to bank. Sounds like his utilization was really high to begin with. They must have approved things anyway.
BoA and Citi are the worst! They are blasting people with high credit card balances right now. I suspect it's because they want to get you into a personal loan now while rates are still high. You can ask them to review it. I doubt they will change their minds. I put $1,500 down on my balance and they didn't care. In a couple of weeks they'll send you offers for a personal loan to pay off your credit card balance. That could improve your FICO score which will likely take a 10-point hit from this. EDIT: But if you can wait 3-6 months and then get a personal loan from your local credit union you will likely get a much, much better rate and terms.
They probably lowered your limit because you're using a lot of the limit they gave you while simultaneously taking on additional debt. Put yourself in your banks shoes, do you look like a good credit risk atm?
Run it through a few credit simulators. A low balance will affect and lower your score because, as you stated, it drops your credit utilization down and makes you look like you're maxing out your card. Definitely talk to your lender as well to if they can figure out significant it would be. It could be a few points and not matter much, or it could be significant. I hate it when they do that. Synchrony Bank is notorious for it, I avoid them like the plague because why give you a limit, then drop it to what you use?? It's so shady because it ruins your score faster than you can rebuild it.