Does refinancing help FICO scores?

[Anonymous]

Here is a question:

Suppose you took out a mortgage in 2006.   If you refinanced in 2008, would it help your credit score to now have 2 TL's for the same property?   The closed original mtg loan, and now the new refinanced loan?

I know the score will drop short term, but say 3 years later in 2011, won't it actually help to have an extra TL, albeit a closed one?   If so, it would help for another 7 years until it dropped.

Please ignore whether refinancing makes financial sense or not.  Just considering the potential and likely affect on FICO score only.

Thanks.

[Anonymous]

The difference between my EQ and TU scores (TU has my closed in 2004 mortgage and EQ does not) is very small-

So does a REFI help your score ? Nope.

[Anonymous]

Timothy:  Has anyone figured out why EQ drops so many closed accounts before the 10 years are up and the other 2 do not?   It may not matter in this instance, but I am sure there are plenty of cases where prematurely dropped accounts are lowering EQ scores below where they should be........

[Anonymous]

From *my* experience, I refinanced lats year, as I got an incredibly low interest rate for a 15 year Home equity. I paid off debt with it, and was shocked to see my score jump 50 pts on Eq and Exp, and 30 pts on Transunion.

[Anonymous]

Not sure-

I have been trying to re-insert this account for 9+ months-

The OC sent a refresh and TU and EX updated-

I have sent a copy of my report with it on there, letter from OC, still can't get it back on there.

The DW is not on our current mortgage- so it's hurting her more than me.  On EQ- all she has is closed installment accounts and revolving.

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Boscoe wrote:

Timothy:  Has anyone figured out why EQ drops so many closed accounts before the 10 years are up and the other 2 do not?   It may not matter in this instance, but I am sure there are plenty of cases where prematurely dropped accounts are lowering EQ scores below where they should be........

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[Anonymous]

Paying down UTL will give you a score boost-

So this example is not exactly apples to apples.

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Ishmael109 wrote:

From *my* experience, I refinanced lats year, as I got an incredibly low interest rate for a 15 year Home equity. I paid off debt with it, and was shocked to see my score jump 50 pts on Eq and Exp, and 30 pts on Transunion.

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[Anonymous]

I have been trying to re-insert this account for 9+ months-

The OC sent a refresh and TU and EX updated-

I have sent a copy of my report with it on there, letter from OC, still can't get it back on there.

_________________

Timothy:  Your note above - you mean you were battling to re-add this for 9 whole months before TU and EX did?   I have been told it takes 4-6 weeks (Discover) and 90 days (Wamu).   Nothing has re-appeared yet, so we shall see.

Did you dispute with CRA's, attaching the letter from the OC?   I am trying that now.