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Posted in Mortgage
Mortgage lender wants me to close one of my 2 credit card accounts. Does this make sense?
Have good credit score (765), Have paid off car and both (2) credit cards. Figured this would more damage than good. Why do they want me to close the one account?
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Question By
Ferdling

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I think in this case "silence might be golden".  Would be interesting to see what they would though.

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Response by
Ferdling

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My thoughts exactly.  Unfortuntely they have 500 of my money and according to their web page, if I reneg, then they get to keep the 500.  Think I'm gonna sit tight and let them (Quicken) reject me.  Do you know any other way to accomplish this?   

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Response by
Ferdling

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To the best of my knowledge, you are not under any obligation to close the account. They approved your with your current credit without the closed account. I'd be curious what they would say if you just said no. If they won't underwrite you, then you could make a good argument to get your money  back. 

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Reply by
hardeight

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I am going through the same situation. My lender is telling me to close 3 credit cards that have zero balance. I don't know why. I am worried about my score dropping. It is high so why close? I have no debt with any of my other cards.

Response by
fagarcia14

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Yes, maintain your credit score for two reasons.  Many lenders will check your score sporadically during the loan process and two you could be applying with another lender soon.

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Response by
nandog

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New information.  Now they want me to divulge the particulars of my personal savings by sending them a copy of my account activity for last month (including deposits and expenditures).  Of course they don't need this information....so why?  Doing some research with FDIC documents about on-line mortgages and such.   Shoulda been careful....."if it's too good to be true, it probably is".  BTW, copies of paid receipts weren't acceptable, they want certified signed documents from the Credit Union where I had the car financed.  More coming up at ten.  Getting deeper by the minute......

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Reply by
Ferdling

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This is very strange. I haven't heard about lenders asking for this in 10 years. The logic is that closing your accounts limits your overall credit exposure. If you have less credit there is less chance that you can over extend. 

I haven't seen any of the large lenders asking for this. In your case, closing one of two card could lower your credit score. I would make sure to get other quotes if I were you. 

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Response by
hardeight

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