Reply
New Member
Posts: 2
Registered: ‎04-08-2007
0

596 FICO score and total debt

My $93,000 mortgage is incorrectly labeled as an installment equity loan.  When added to $12000 student loans and credit card balances of $12000 it looks like I have high debt.  My car loan is paid off and I have some lates on closed store credit and some collections for tiny amounts that I'm disputing.  Does mortgage on secured real estate compute better on FICO than an equity loan, even when it is also secured credit?  It has been open almost 7 years without a late payment.  Do I really deserve such a low score?
Moderator Emeritus
Posts: 5,436
Registered: ‎03-10-2007
0

Depends



LuckyLucy wrote:
My $93,000 mortgage is incorrectly labeled as an installment equity loan.  When added to $12000 student loans and credit card balances of $12000 it looks like I have high debt.  My car loan is paid off and I have some lates on closed store credit and some collections for tiny amounts that I'm disputing.  Does mortgage on secured real estate compute better on FICO than an equity loan, even when it is also secured credit?  It has been open almost 7 years without a late payment.  Do I really deserve such a low score?


 
While the FICO score does look at utilization on revolving debt, it also takes into consideration how much you still owe on installment debt to score you as a good candidate.  Open collections always hurt you.  I would contact my broker and ask that they report the mortgage as a mortgage loan not an equity.  Equity implies you borrowed against your home don't knwo how that figures with FICO but from a lenders point of view unless it was home improvement most frown on turning unsecured debt into a debt tied into your home as collateral FICO probably does the same as large equity loans can be a sign of financial trouble. 
 
You mentioned 12000.00 in CC debt what's your total credit line on all your card? Remember if they are reporting no credit limit such as C1 you have to use the highest balance charged to the card shpwing on the report.  How old are your lines?  If your cards are over 10-30% utilizaed you could drastically improve the score by paying them down.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.