topic Mortgage Question in Understanding FICO® Scoring

Mortgage Question

Shafter — Wed, 23 Jan 2013 02:54:10 GMT

On my credit report, I have a mortgage company that reports a zero balance which is correct. The account does not appear to be closed. Does the payment amount showing go against my credit score. Should I contact the mortgage company and have it removed or the credit reporting agentcies.

Re: Mortgage Question

llecs — Wed, 23 Jan 2013 03:06:14 GMT

No, it isn't hurting. Whether reporting opened or closed, FICO still scores all $0 balance loans as closed, regardless of the reported status. The assumption is that you never can reopen a new loan without getting a new one.

FICO also ignores the payment amount. That's not a part of FICO scoring. Under a manual review, lenders do consider it, however if the balance is $0 then the assumption is made that it is paid. My mortgage lender ignored all minimum payments on any $0 balance accounts.

I wouldn't touch that account. There's always the risk of them deleting it. And if changed it wouldn't help anything anyway.

Re: Mortgage Question

JM-AM — Fri, 25 Jan 2013 02:54:25 GMT

llecs wrote:
No, it isn't hurting. Whether reporting opened or closed, FICO still scores all $0 balance loans as closed, regardless of the reported status. The assumption is that you never can reopen a new loan without getting a new one.

FICO also ignores the payment amount. That's not a part of FICO scoring. Under a manual review, lenders do consider it, however if the balance is $0 then the assumption is made that it is paid. My mortgage lender ignored all minimum payments on any $0 balance accounts.

I wouldn't touch that account. There's always the risk of them deleting it. And if changed it wouldn't help anything anyway.