increasing mortgage fico scores

[StartingOver10]

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@Revelate wrote:

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@Anonymous wrote:

Thanks for clearing the paydown issue up.

Based on what I read in your email, I should not go ahead with this; I do have a number of mortagages and car loans paid off in the past. I thought that they needed to see a current one, since the threads I read seemed to indicate that once the installment loan is paid off, you lose the advantage score-wise, and will actually drop some points.

Regarding your question on the LTV, it would be for a jumbo loan for a house (I live in the San Francisco area, it is unfortunately not optional). I think in the 1.2 million dollar mortgage range. It seems that PMI is not a factor with some lenders at this range, not sure. The jumbo DP has loosened up and 10% down payment is available. I have a problem, though, a BK Chapter 7 in the fall of 2013. Have been told I need to wait 4 years post BK or pay a lot more interest. Meanwhile, I am trying to get my ducks in a row to make sure I have the highest score I can.  If it weren't for the BK I would be able to buy, at 10, perhaps 15% down with good reserves, but the lenders are saying no go, to wait until the BK seasons.

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If you don't have an open installment line, then the trick is for you.

If you do have open and non-trivial installment lines, then it likely won't make any material difference (unless you do something rather obscene which would disadvantage you mortgage wise).

The thread is confusing as it was really a research thread rather than a "Do this!": there's a new one which CreditGuyinDixie just posted which is frankly better; what you do anyway is simply open the loan, and then pay it down to 5% or whatever, and then just let it sit kicking $1 to it every couple months to keep inactivity fees away.  That way it doesn't get paid off for something like 57/60 months, maybe even 58/60 months without running the numbers on the term lost due to paying some laughably small amount of interest.  Once you get the mortgage though you can comfortably pay it off if you wish, or just leave it there to help thicken your file, but it won't impact scoring when the mortgage dominates the installment utilization calculation.

S10: inquiry damage was actually from the second mortgage pull passing out of the 14 day Experian de-dupe window.  Wasn't anything associated with the Alliant loan.

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I remember now....sometimes it is tough to keep track!

[Anonymous]

that makes sense. How many months before the loan application would you do this? Because I will get dinged on the inquiry, right? Also, can you tell me how to contact Alliant?

Thanks!

[Revelate]

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@Anonymous wrote:

that makes sense. How many months before the loan application would you do this? Because I will get dinged on the inquiry, right? Also, can you tell me how to contact Alliant?

Thanks!

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http://www.alliantcreditunion.org/

There's no credit check with them for their share secured loan nor for membership.  

If you're getting a mortgage anytime in the next 5 years I'd do it ASAP; limiting factor on that would be maybe if you were chasing a mortgage in the next 4 months, but otherwise when we're talking long-term credit, get any negatives out of the way and aging immediately, and since a new tradeline (or new inquiry which doesn't apply in this scenario) is something of a penalty potentially with AAOA, best to do it immediately rather than delaying on it.

[Anonymous]

Thanks, Revelate, I opened the account shortly after reading your email.