Credit score drops by 75 points because of American Express untimely reporting
Don't go above the credit limit on your credit cards. It may really throw your plans in disarray. But things like this one happen quite frequently, believe me. Friend of mine was prequalified for a mortgage few months. He had several rather big issues in the past but has been a law abiding citizen for the last 4 years, at least in credit terms. His scores were 688, 679 and 660 with Experian, TransUnion and Equifax respectively. Finally he found a property on short sale. His offer was accepted 4 weeks ago and he was ready to go. Once his mortgage broker reran his credit, which he had to do, the new credit scores came lower. Experian was the worst at 613 and first, the 75 point drop was impossible to explain. Nothing looked bad enough to justify such a decrease. Except that American Express account was over the limit for about 2 days by just $3 and some change.
He paid American Express account down to bring it well under the limit, but it was too late. American Express has just reported his over-the-limit account and that literally killed his credit score. After he paid it down, it took American Express 10 days to report the new account status. Not because it wanted to ruin his chances to buy a house, but because that how American Express reports. Once the account was reported current he recovered quite a bit albeit not entirely, and had to write a letter of explanation. Closing was also moved, but hopefully he will get the house. The bottom line is, no matter how little you go over the limit on credit card and for how short of a time, credit card issuer may happen to report in the most inopportune time.
Thu Sep 2, 2010 06:09PM | Copyright: www.bad-credit-advisor.com | More in Credit Score Help | Comments (0)
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