05-04-2013 09:22 AM
We are planning on applying for a mortgage in the next 12-18 months so I have decided to make sure our credit is in the best shape. When we pulled my husband's reports, we found that our mortgage is not reporting correctly. Our old servicer was reporting it as "IN FORECLOSURE, more than 120 days past due, more than four payments late" with a balance of $88,xxx. Our new servicer has it reported as CLOSED account with no payment information or payment history at all and $0 balance. I disputed both of those b/c while the payment was indeed late to the old servicer it was NOT in foreclosure or more than 120 days past due. It wsa definitely 30 days late and it is now reporting as 60 days late which could be accurate since the changeover took place at that time. So using the Equifax Premier plan, I received an alert that the old servicer was now reporting correctly. No change to the new servicer yet. I was happy so I pulled a new score and it showed as a 20+ pt drop!!!! What in the world? The entry was clearly improved, not made worse. I am so upset with myself now. Obviously, I have no interest in making our credit WORSE. There were absolutely no other changes to the report.
05-04-2013 06:23 PM
Hi and welcome to the forums,
Where did you get your credit scores? and when?
05-04-2013 07:31 PM
05-04-2013 07:55 PM
I just read in the mortgage section that there can be a drop if you sell your home and the mortgage is reported as closed and the new mortgage hasn't reported yet. I am wondering if that is what caused it. Since he has only installment loans and the mortgage, I wonder if that took him down b/c he only had one installment loan showing as open and all other lines were showing closed? That makes me feel a bit better. I was hoping for an increase, but now I will be happy just to get back to where we were!
05-05-2013 02:28 AM - edited 05-05-2013 02:30 AM
Moving your thread to Understanding
Credit FICO Scoring.
The score you received from EQ is what we call a FAKO (not a real FICO score)Suggest reading The Son Of Credit Scoring 101.
Other members, please chime in
05-05-2013 06:46 AM
Once I disputed an old account that was showing in collection ... the creditor said it was confirmed, and went the extra step to drop the shown credit limit to the value of the debt. My score dropped because of that (utilization went up) when nothing else changed. It bothered me until I was able to get it cleared off.
But you should also know the MyFICO or EQ score you purchase is only one "real" FICO score out there, and lenders may use one of 46 other "real" ones, all provided by EQ. So the scores you see may have a correlation, but there's a very high chance the score you see is very unreliable. It's about the same as the free services out there. MYyFICO or EQ will make no guarantee that the score they sell you is the one they send to your creditors. There's examples all through this forum.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO