Settled Charge offs, Fico 08 score went up, Fico Mortgage score went down

[Anonymous]

So frustrated. Capital One finally updated my two accounts to zero "account legally settled for less than full amount".

Anyways, they both show a zero balance, my FICO 08 score went up by 5 points, but my MORTGAGE fico went down 12 points!!! Which hurts me terribly because I was JUST on the line to get my FHA mortgage next month, now I need 10 points back!

These accounts were originally updating monthly, screwing up my utilization etc, so I thought paying them to a zero would result in an increase in all the scores??

Can someone provide guidance to me, because i have one more account that has yet to update to zero and now I'm scared it's going to plummet the scores instead of help them. The mortgage guy wanted me to pay these off, but now the score is going down

If they will go back up, how long, one month???

[gdale6]

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@Anonymous wrote:

So frustrated. Capital One finally updated my two accounts to zero "account legally settled for less than full amount".

Anyways, they both show a zero balance, my FICO 08 score went up by 5 points, but my MORTGAGE fico went down 12 points!!! Which hurts me terribly because I was JUST on the line to get my FHA mortgage next month, now I need 10 points back!

These accounts were originally updating monthly, screwing up my utilization etc, so I thought paying them to a zero would result in an increase in all the scores?? Not always in all Fico models as you have noticed unless you can find something else that has changed that may have caused a net drop instead of a wash or small increase.

Can someone provide guidance to me, because i have one more account that has yet to update to zero and now I'm scared it's going to plummet the scores instead of help them. The mortgage guy wanted me to pay these off, but now the score is going down

If they will go back up, how long, one month??? Well when they update they look new so its going to take time to gain the benefits of settling them they have to age, Fico considers anything within 2 years as 'new".

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[Anonymous]

Scoring is mysterious, so it's hard to say how long. I'm in a similar situation, though, so I'll offer the info I got.

I was originally planning on app'ing in September, but have since readjusted my goal to next April. The advice my broker gave me was to get, ideally, 1 year between me and any major changes. I've gone on a payment spree, added cards and am adding a new installment loan this month. It's barely budged my mortgage score but sent my 08 score on an upward trend. He said the mtg scores are slower to respond, so a year or so of aging should result in a change.