Profile picture for LouiseBell8

Lender use payment on credit report or call credit companies?

I was just wondering if this is normal. My three credit reports show a 0 balance on one of my cards but my lender requested a credit supplement. I had a three way call and although my last statement balance was 0, my current balance is $200 with a hypothetical minimum payment of $40. Now the lender wants to use the minimum payment of $40 against my debt to income instead of the 0 on credit report and last statement. I have never of a lender doing this before. Also, my husband and I are also authorized users for each other on two of our cards but they are trying to count their payments as four debts. I've explained this at least five times to the loan processor, the credit reports I pull say AUTHORIZED USER on their respective accounts and it's obvious by the credit limit/balance that there are only two "real" accounts. Are these procedures something new?
  • May 29 - US
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Answers (5)

In terms of using the $40 per month, you'll have to use that payment. As far as the Authorized User accounts, if it's an American Express account, the creditor doesn't report the real account number on your credit report. The loan processor may be having an issue matching up the account on your credit reports which is why they are hitting you up four times. You may need to give them a copy of your credit card statements and hand write the credit card numbers on it and give it to your loan processor to order a credit supplement to have them identify and confirm which account is which.

Good Luck
  • May 29
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Some credit reports show the credit card balances over the past 12 months.. and if this is the case with your new lender, and they see balances every month, then it's within their desecration to ask for a supplement. If there is an outstanding balance at the time of the supplement, then they are required to account for the minimum payment or calculate a payment based on 5% of the outstanding balance if no payment is shown. 

Feel free to reach out to me via my profile if you have any additional questions or concerns.  William J. Acres, [Self promotion removed by Zillow moderator. Please see our Good Neighbor Policy.]

  • May 29
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Profile picture for LouiseBell8
I thought they would check your credit report again or ask for the new statement (which hasn't come out yet). My statement doesn't close for two weeks so the credit report still shows a 0 balance. I sold my first home two years ago and they used what was on the credit report. I was never asked to 3-way each company for the current balance. The card generates cash back for groceries; overspending isn't the issue, I just didn't assume any such policy existed except for student loans or if something was missing from the report.
  • May 29
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Profile picture for wetdawgs
It is normal for lenders to check your credit utilization at the last moment before issuing a clear to close.   So, if you are close to limits for qualifying, it is time to hold back on spending more than routine grocery and gas money.    If you had a big margin of error (e.g. pre-approval for a million and you are buying a $250k house), then you have more room to play.

You can, of course, pay your card down to $0 before the bill comes (and keep it at $0).


  • May 29
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Throughout the process credit is often going to be monitored to make sure that you haven't taken on significant new debt so if they update credit and find an increase balance, they can require that the minimum payment be used toward your debt ratio.

They should not however, be double hitting you on authorized user accounts. 
  • May 29
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