It’s wild how inconsistent it can be. I’ve seen clients with high limits get flagged just because the “potential” debt is there, even if they never use it. Lenders seem to care more about what *could* happen than what actually does. Paying down cards helps, but sometimes just having a bunch of open accounts—even with zero balances—spooks underwriters. It’s not always logical, honestly. I wish there was a universal playbook, but every lender seems to have their own quirks.
You’re spot on about how weirdly inconsistent it gets. I had a client last year with a near-perfect credit score, never missed a payment, but she had a bunch of old credit cards with sky-high limits she never used. Underwriter flagged her file and basically said, “If she maxed everything out, her debt-to-income would be a problem.” Never mind that she’d never done that in her life. It felt like they were punishing her for being “too prepared.” I get the risk-averse logic, but it’s frustrating when you see responsible folks get dinged for what *could* happen, not what actually does.
Honestly, sometimes closing a few unused cards before applying helps, but then you risk a dip in your score from lowering your available credit. It’s a bit of a catch-22. Every lender seems to have their own pet peeves—one likes to see lots of available credit, another gets nervous about it. I wish there was a universal standard, but until then, it’s just about knowing which hoops you’re jumping through this time around.
I get where you’re coming from, but I have to admit, I actually kind of understand why underwriters get nervous about those high-limit cards. Years ago, when we bought our first house, our broker warned us about the same thing—said it’s not just about what you’ve done, but what you *could* do if things went sideways. It felt a little unfair at the time, but looking back, I guess they’re just trying to cover every angle. Still, it’s wild how one lender sees “prepared” and another sees “potential risk.” Makes you second-guess every move.
Right? It’s like, you get a higher credit limit because you’re responsible, and then suddenly it’s a red flag? When we refinanced last year, the underwriter grilled us about a card we hadn’t touched in months. I remember thinking, “Do they expect me to go on a shopping spree mid-mortgage?” Sometimes it feels like you need a crystal ball just to guess what’ll set them off. I guess it’s all about their risk calculators, but man, it makes you rethink every financial move.
Sometimes it feels like you need a crystal ball just to guess what’ll set them off.
Honestly, you’re not wrong—underwriting can feel pretty unpredictable. They’re just hyper-focused on “what ifs” that most of us wouldn’t even think about. It’s frustrating, but you’re definitely not alone in feeling this way.
