58 point drop?

[Anonymous]

Hi all,

In March I applied for a mortgage pre approval, Got my scores from the lender TU 703 Eq 671 Exp 653 and got approved for a mortgage.(cant find a house in my children’s school district go figure) Fast forward to July.

After reading on here I decided to try to get some credit cards. I applied for Orchard and BOA. I got approved for Orchard but got a denial from BOA on their reason why paper they said it was do to lack of revolving credit history, ok fair enough I don’t have any CC but upon reading further down I see a score discloser it said that they pulled Ex and my score was 595 both CC pulled EX so now I'm in panic mode.

 I pulled my ex report to find out what is going on. Not one thing has changed on that report except for the 3 inquires. So now I'm really confused I knew I would take a point hit for the hard pulls but 58 points seems a bit drastic. My worry now is that I will find a home I want to buy and wont be able to get it due to EX. BTW I pulled my scores from here and they are TU 693 and EQ 671 so there was no major hit on those scores.

 I'm a bit confused. How long until my score from ex comes back up? Has anyone ever seen such a drastic point drop from inquires?

TBC

[llecs]

First off, stop applying for CCs if in the middle of a mortgage/home search! Adding new accounts, like a CC, will usually drop your scores. It depends on what your credit looks like now. Also lenders are skiddish with new TLs reporting.

For the difference, you'd want to find out if both EX scores are FICO scores. It is highly likely your mortgage lender pulled FICO. And there's a chance that BofA did too, though you may want to confirm that. Some, like Amex, will use their own scoring system or FICO or a combination of both in consideration for approval.

Assuming both were FICOs, then it is likely your lender used a CLassic FICO score (as do most all others use). Though, for your CC, some lenders use an industry-specific FICO, specifically a bankcard-enhanced FICO that weighs your CC experience above all else. The score range is slightly different too. I wouldn't worry about BofA's score, though it can easily drop to that if you keep adding accounts.

[Anonymous]

Thanks for the reply llecs,

I never had any CC's I searched on here and what I have read is that having a mix of credit is best to improve my scores. Then I searched for the best starter cards and came to my own conclusion thar BOA and OB were best to start out with.

I do have about 16 years of good history with instalment loans, and one bad small medical collection from two years ago that I refuse to pay because it was supposed to be billed to my insurance, and have been fighting with them for the last two years. I never had a need for CC's boy wish I could go back 16 years with what I know now.

I really hope this does not affect me being able to get a mortgage in the future.

TBC

[Booner72]

Yes, stop any inquiries or new credit. On my loan application I have to explain every inquiry and explain any new credit in the last four months.  Secondly, even if your EX score is that low, the mortgage co. will go by your middle score - so as long as the other two are 640+ you will be okay.

[Anonymous]

Booner72 ,

That is good to hear and I will not apply for any new credit. About how long do you think before that score comes back up? OB should start reporting next month I am planning to keep about 10.00 on a 320. limit.

TBC

[llecs]

OP, if OB CC is your only CC now then you might actually see a bump. But ditto. Stop at that. Besides BofA is overrated anyway!