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Equifax 20pt jump after new mortgage shows up.

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Revelate
Moderator Emeritus

Re: Equifax 20pt jump after new mortgage shows up.


@Thomas_Thumb wrote:

The fact that credit reports have a different line item summary for mortgages vs installment loans indicates they are factored differently. Some credit score estimators bump score up when a non mortgage installment loan is added to a profile which already includes a mortgage.  So the reverse is likely true as well. My credit mix with just credit/charge cards & mortgage rated a "C". 

 

 


Rated by whom?

 

TBH I treat all 3rd party represations as suspect, and to be utterly fair, when it comes to the FICO algorithm even Equifax's presentation is too Smiley Happy.  Don't know, I know I've seen some datapoints over time but not sure we knew enough before our delving into installment utilization to really be able to get a clear datapoint... my second mortgage payment gets made on the first and figure it might report after that.  Maybe.




        
Message 11 of 15
Thomas_Thumb
Senior Contributor

Re: Equifax 20pt jump after new mortgage shows up.

Credit mix rating was a 3rd party souce - but not the one discussed below.

 

I treat all estimators as suspect. My actual score is always outside the stated estimator range based on manually input data. However, I try to glean some grain of useful info running what if scenarios using each estimator while realizing they all have ulterior motives.

 

There is one estimator I came across that actually deducts points if you specify you have one or more store cards. Discounting people's credit worthiness just because they have a store card(s) is problematic [if it were actually used in credit decisioning]. The particular estimator that dislikes store cards (link below) does not reference Fico.

 

http://www.zilchworks.com/credit-score-calculator.asp#results

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 12 of 15
Thomas_Thumb
Senior Contributor

Re: Equifax 20pt jump after new mortgage shows up.


@Revelate wrote:


The second part likely depends on how it's reported honestly.  

 

If it is simple installment, then I'm going to get whacked hard and we know how that works pretty well in the FICO 8 04, and 98 algorithms.  We're missing some precise breakpoints but we know they're there and it's pretty conclusively aggregate rather than individual tradeline metrics.

 

If the mortgage counts as something else, I don't know how it's going to work.  There's been lots of things I've seen online that maybe it's counted seperately: FICO reason codes, the old and maybe current Equifax reports from the bureau, but we just don't know explicitly.  I'm really really hoping my new Cap 1 reports soonish so that I can get a good checkpoint before my mortgage lands.  Need to get my report more stable than it is.


I think Fico 08 will reward you for an open mortgage (within a short time frame) but Fico 04 will not.

 

It will be interesting to see if your EQ and TU scores flip from Fico 04 being higher than Fico 08 to Fico 08 being higher than Fico 04

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 13 of 15
lhcole77
Valued Contributor

Re: Equifax 20pt jump after new mortgage shows up.


@Thomas_Thumb wrote:

Another data point supporting a potential Fico 8 ceiling without an installment loan/mortgage.

 

I have a long standing hypothesis that an open mortgage increases maximum score potential up to 30 points but not initially as some points are deducted (10 points generally but maybe up to 20  until a certain age and/or % of balace remaining threshold is reached). Also suspect a closed installment loan on file may account for 10 of the 30 points - in which case a 2nd one that is open may only have the potential to add 20 points.

 

Food for thought. Any data supporting or discrediting the hypothesis is welcome.


Wanted to chime in on this.

 

I have open student loans in deferment. I also have a closed/paid car loan. Recently a new installment loan reported on my profile and I saw a 20pt increase on all three FICO 8 scores.

 

Also, FWIW, my "mix of credit" went from Good to Exceptional after the new installment loan reported.

 

Message 14 of 15
merlinflex
Frequent Contributor

Re: Equifax 20pt jump after new mortgage shows up.

And an update from me, the OP, just got my CreditKarma update this morning, scores there jumped 12 and 15pts on TU and EQ.

 

I know that CK is useless, more or less, but good to monitor activity......

Message 15 of 15
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