01-26-2011 01:11 PM
This has been interesting to follow.
Now, don't throw anything at me, but it seems like it may be time to untie the undies and move forward. IMO.
I'm going to be untying my undies and washing them in an apartment complex washateria, since this is probably going to lose me my home loan (with w/d connections) .
I have good "old" credit, and 5+ years of no credit while I cleaned up. As soon as my score improved, I got 2 credit cards, Kroger and an HSBC, which are almost a year old. No other credit to mitigate the blow.
When the Kroger/US Bank thing happened, (ding--ding) my score dropped 20 points. I was preapproved for the loan with a 665, (minimum for the loan of 660) and now I'm at 645.
01-26-2011 03:03 PM
Point well taken, woozy.
I would be upset if I lost 20 points and it put my home pre-approval on the rocks. After untying my undies and washing them in an apartment complex washateria, I would promptly have them knotted up again. Maybe before they even hit the dryer.
Walk me through it a bit. So your middle FICO score was 665 at the time of the pre-approval, and with the only change being the new date on the new USBank reporting, it dropped 20 points? And it's still your middle score?
DH is living in an alternative universe to yours. He didn't lose FICO points. (In fact, he gained about 7 in the time period when USBank reported). And, like you, he has good "old" credit and about 5 years of no credit while he cleaned up. His Kroger was also about a year old. 20 FICO points for a new account with not very many open accounts and all of them young is the opposite of anything that's happened to him as he's opened accounts in the past year or so.
My report is also pretty similar to yours. Good old accounts. About five years with no accounts. And some new accounts a year or so old. I did add a new account last September - a "real" new account. My EQ FICO (the one I usually track) gained 8 points - keeping it smack in the middle of the 700-711 range I've been sitting in for the past 18 months. It is totally a mystery to me. Totally.
How long was your pre-approval good for and when are you house hunting? I love house hunting and hate the thought of anyone having to put it off while FICO's build up again. But, then again, when my FICO was in the 660 range there was more going on than just one account reporting new.
I hope you can shed some light on this somewhat baffling stuff.
01-26-2011 05:56 PM
It's a USDA loan, and they don't give you an official time frame for a pre-approval. In fact, some USDA (direct) offices don't do pre-approvals, it's at the discretion of the local office. For my circumstances, the only thing set in stone is that 660-or-better score.
The other thing that is going on (and solves part of the mystery) is that I have 50% utilization on the cards, so instead of having a higher-than-700 score, I've had ~665. The amounts on the cards were put on months ago, so that isn't part of the recent drop. Every payment on both cards has been on time.
I've been stuck in the 660-670 range for months, and the only thing weird that has happened is US Bank. Yeah, I know, I should pay off the cards, but I just can't. The thing that will really help my finances is to cut my living expenses in half with that USDA Loan.
When the 2 cards hit one year of on-time payments, I should see a l'il jump. But Catch 22 is that the USDA will probably be out of funds by the time they age a bit, plus the time it takes to go thru the USDA gauntlet.
I'm house hunting now, but I really want to build on 10 acres that I own outright. It depends on how much they'll give me. I don't think I'll get enough to build, since I'll need a septic, water meter, etc, on the land.
Anyhoo, I would think it's the utilization dragging down my score into the 6's.
The only thing different to take it under 660 is a closed Kroger card, and a new US Bank.
01-26-2011 06:04 PM
10 acres sounds lovely - whenever you wind up building on it.
We lived on a mere 3 acres a bit back - but all our neighbors had similarly large (or much larger) plots, so we enjoyed our "out in the boonies" adventure. Beautiful!
So, does the USDA pull all 3 and use the middle score?
Or do they just pull one?
How often do they run out of funds - like is this the beginning of their fiscal year and they've run out already? And then it starts again?
01-26-2011 06:27 PM
They use the middle score.
Last year they ran out of funds really early. They should publish a little hourglass showing how much is left. You're on the top of the list when the funds come in, but some people wait for months.
I was pretty happy to not have any new accounts dinging my credit. It looks pretty bad to be getting a poor-folks home loan, and right in the middle of the loan process you have the ugly wound of a new credit card. I was getting all happy to have all accounts more than a year old, and now I have another year of waiting for this stupid account to age.
Color my panties PO'ed.
01-26-2011 06:39 PM
Duh. I'm not getting ready to have 2 credit cards aging to one year.
The Kroger is gone.
Well, the Kroger account is still aging. And the USBank is reporting as four months old in just a week.
We got a mortgage with new cards - they didn't bat an eyelash.
To explain - we were planning on apping for a refi in about a year - suddenly discovered we didn't have to wait and had a handful of new cards (as in NEW - 30 days old) - each! Was not a problem for us, our mortgage guy, or the mortgage approval.
So, even with the 20 point drop in your middle score (whichever one it was), it remained your middle score and didn't become your low score?
01-26-2011 06:42 PM
Duh. I'm not getting ready to have 2 credit cards aging to one year.
The Kroger is gone.
I feel bad for you! U.S. Bank needs to make this right and I have told them that in today's letter.
01-26-2011 07:03 PM
645 is my middle score. I have to wait to apply until it's 660. Everything else about my USDA loan approval looks perfect. I'm going to have to sign a one-year lease soon, so I guess I'm done-for.
My Kroger is CLOSED.
01-27-2011 06:10 PM
Here's my rebuttal to U.S. Bank response. I'm waiting for them to respond.
As of today, my credit reports with Equifax, Experian and Transunion are reporting the wrong opening date or no date at all. U.S. Bank indicating the Kroger account became converted to a U.S. Bank credit account November 2010 and must report with that open date. If the account was opened in November 2010, please explain why the status on my Experian report says: Date Opened: 10/2010 Date of Status: 12/2010 Reported Since: 10/2010 Last Reported Date: 12/2010. Please explain why the status on my Transunion report says: Date Opened: 10/2010 Date Paid: 07/2010(4 months before the account allegedly opened). Please explain why the status on my Equifax credit report isn't reporting an opening date?
The ball was dropped somewhere between RBS and U.S. Bank and now the cardholders credit scores, insurance scores and etc. are suffering because of the incompetency. Someone needs to pick it up and fix it.
My account isn't the sole account that's reporting incorrectly. This has happened to all of Kroger 123 cardholder's account. Had I known U.S. Bank would create a new account and not maintain the history my Kroger account that was opened 9/11/2009, I would've rather for RBS closed the account before US Bank acquired it.
U.S. Bank you suggest that when I apply for credit in the future I should explain to the creditors about checking the history of my Kroger account rather than the US Bank account. That's easy for you to say. Its one thing to have one's credit reports manually reviewed so you can explain issues, but for car insurance, utilities etc. my understanding is that the score is the issue.
I sincerely would like for U.S. Bank to fix this simple issue and correct Kroger cardholder's account opening dates. U.S. Bank are hurting its customers who maintains excellent credit and understands how the credit system works.
Furthermore, I am requesting that U.S. Bank send me a copy of the Universal Data Form. I would like to see how my account is being reported to Equifax, Transunions and Experian via the e-OSCAR system.
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