Big Fico Drop for no reason

[Anonymous]

My FICO dropped from 694 to 674 due to a new report from Wells Fargo of a Home Loan.  The loan was a refinance from April, and bounced from Wachovia, now a Wells subsidiary to Wells when it was sold to Fannie Mae.  It makes no sense that this be considered "new credit", and the Wachovia origination is showing $0 balance.  Is it worth the effort to try to correct this?  Or will it wear off in a month or two.  

All I did was refinance my original loan, no cashout, or other items that would affect outstanding balances. 

Is it possible that Wells is incorrectly reporting this as a "New Loan"? 

[Jazzzy]

Hi moby...you say that you refinanced? Signed new papers, etc.? Did you do this for a lower interest rate?

If so...then this is a new loan. If your loan just transferred, then it isn't a new loan.

Can you give a few more details?

[MarineVietVet]

I have to agree with Lynette.

If you refinanced then that = new application = new loan = new credit on your report.

[fused]

I agree with the other two posters, but I will also add one more thing that "might: have lowered your score.

- a new account will take down the "average age of your accounts" (AAoA)

[Anonymous]

Thanks for the suggestions.  I refinanced last spring which should have already hit my report this summer.  So, the transfer from Wachovia (who refinanced) to Wells Fargo is a simple transfer, not new credit.  The way my report reads, it looks like the report considers this two separate credit applications events. 

Why?  To get a rate of 4.5% which is historic, and will be mortgage I keep for a very long time. 

Also really appreciate the thought about shortening average length of credit, but that should be a minor item since I have many long held accounts. 

[Jazzzy]

---

@Anonymous wrote:

Thanks for the suggestions.  I refinanced last spring which should have already hit my report this summer.  So, the transfer from Wachovia (who refinanced) to Wells Fargo is a simple transfer, not new credit.  The way my report reads, it looks like the report considers this two separate credit applications events. 

Why?  To get a rate of 4.5% which is historic, and will be mortgage I keep for a very long time. 

Also really appreciate the thought about shortening average length of credit, but that should be a minor item since I have many long held accounts. 

---

I think I'm understanding...this is actually a transfer of the already refinanced loan??? If that is the case, then a transfer is not a new loan....

...however...

I have no idea if mortgage reporting is handled the same as school loans, but this happens often with my grad school loans. For example, I get two loans at the beginning of the semester. Fairly soon, those loans go to someone who makes it into one loan. I have no say in this. The first two loans show "Transferred / 0 Balance." Then, the new loan shows up with the balance. In reality, I now have 3 loans reporting for the same loan money. After I graduate, these loans will be consolidated, and they will transfer again. I have never disputed this because it is correct reporting, although frustrating. It absolutely lowers my average age of accounts. Some of the credit reporting agencies drop the transferred ones off, others don't. For example, EQ has me at 35 accounts, while EX has me at 27 accounts. Most of the difference in that number is from school loans.

I just figure that some day, as the transferred accounts age, they will be an asset to me in average age. These closed loans should stay on my reports for up to 10 years. That will add strength to my average some day.