Another involuntary credit card being closed- Lowes/ Synchrony

[Hall]

Another issue is home buying in a hot market place. Two bids.of equal prices and terms are submitted..one buyer has a credit score of 710, the other buyer credit score of 820. Which buyer did you think has the advantage to be selected to purchase the home by the seller?

How would the seller know this info ? All the seller knows is if the buyer are approved for the loan.

 

[UncleDave]

No reporting agency has explained to my satisfaction why closing an account you rarely use ends up lowering your score.

 

[R18Civic]

Synchrony is famous for this. Use us or lose us.

 

[GON]

How would the seller know this info ? All the seller knows is if the buyer are approved for the loan.

When we were submitting offers to buy a home in a hot market we provided our credit score as a supplemental to the offer. A high credit score may provide some supplemental confidence in the buyer/ offer. On an extreme, if you are a seller and receive a pre-qualified buyer with a 560-credit score, how good do you feel about the buyer's actually ability to close?

Note even pre-qualified and pre-approved are significantly different.

Finally, if the appraisal comes in under the agreed price, does someone with a 560-credit score have the cash to make up the difference between apprised price and purchase price? Maybe. Does a person with a 800 credit score have the ability to bridge the difference between appraised price and purchase price? Again, maybe, but math might suggest the person with a 800 credit score might have more means available to bridge a appraisal deficiency, than a person with a 560-credit score.

 

[JGmazda]

What a crazy system. Cases can be made either way as to why a person should seek a good credit score. Getting there is one thing... maintaining a score is another.
Banks plain suck! If I were the OP... I wouldn't worry about it. They'll survive and you'll be better off not worrying about using 'their" money to buy something you could pay cash for. I find the whole credit system confusing and pretty much a PITA to navigate. Yes...it's how the system works... Still....

 

[JHZR2]

To notify via website doesn't take long.

No kidding, but if I recall correctly, one site even said it wasn’t necessary.

 

[Carmudgeon]

No argument for me, your posts make perfect sense. I am a person who thinks having no credit is better than having credit. Unfortunately, the world requires the vast majority of us to have credit to live a life with options (such as renting a car, renting a hotel room, etc). I know there are work arounds to not having a credit card, but all require supplemental actions.

For grins, two bids come in exactly the same for a home, terms and conditions are exactly the same. Bids arrived at the same time. One buyer has a credit score of 803. The other buyer has a credit score of 797. Which offer does the seller except? If the seller accepts the 797 score, is the seller liable to be sued from the buyer with the 803 credit score?

I agree, maintaining a good, healthy credit history is a practical necessity for most people.

The workarounds I alluded to were not in that context, but in a score being a few points shy of what might be needed to secure a better loan.

My advice -- try to understand how the system works, which isn't always logical to the lay person, but does makes sense to the lenders, and their usage. It is their scoring system, not yours.

And don't just complain about something you don't understand. Be cognizant of where you generally stand, but not to an OCD level, which is unnecessary for those who practice good habits.

That's from the viewpoint of someone who ordered and reviewed tri-merge reports, not merely passing judgement based on the marketing-driven number that flashes on screen when you log in to your online banking or credit card account.

There is some truth to that old joke about one having a "permanent record" when it comes to credit reports, and more to a book than its cover.

 

[opus1]

No kidding, but if I recall correctly, one site even said it wasn’t necessary.

I've had some issuers thank me for letting them know and others that have said it's not necessary. I call anyway.