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Will my credit sccore dopping 5 points matter?

I just added 850 in debt on a credit card. Paying it down but my credit score now dropped. Does that matter for my application? by mastinfo846 from Chicota, Texas. Aug 6th 2021 Reply


Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

It depends whether your lender has already obtained your credit report. Remember, credit card companies report once a month and the balance on the most recently ended statement. Payments made will not reflect on the report until reported again. 5 points usually is not a big deal, but depends whether it puts you in a different tier (usually 20 point increments: 600-619; 620-639; etc. If it drops from 780 to 775 no big deal. In general, the better your score the better the interest rate may be and PMI costs for conventional loans change as well.)

Aug 6th 2021
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

It depends. Every lender and loan product has a minimum credit score. Additionally, pricing improves at every 20-point tier. 620, 640, 660, etc. A 5 point drop within the same tier (or range) will likely produce no negative effects. However, If the score does drop you to a lower tier, resulting in poorer pricing, or takes you below the acceptable minimum score, then we can generally do what is known as a Rapid Rescore and get your score back. Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, OR & WA... In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ www.ApplyYes.com 480-889-9000.

Aug 9th 2021
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,409 contributions

Yes, no and maybe. For the most part, no. If the lender already pulled your credit report, they are no looking again unless the report gets really old. Next, unless it dropped below the minimum for a specific loan program, it doesn't matter. If you had for example, a 745 score, and now it is 730 - that means nothing. If on the other hand, you had a 642, and the score dropped to 637 when the program minimum is 640, then you are denied. But again,. if the lender already pulled credit, it doesn't matter. I lend in MN WI IA SD ND. Find me at FirstTimeHomeBuyer-MN.com - Cambria Mortgage, NMLS 274132

Aug 9th 2021
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