03-18-2013 10:42 AM
Okay, I got a little more clarification today from my mortgage loan officer, and it seems (in my case at least) that both DaBears and Jamie123 are right. According to her, my high 700 credit rating gave me a safe enough cushion that any dings from a new loan (car) or inquiry dings didn't affect my ability to get a loan, and I'm still getting the very best rates available today. With that said, she said she tells most clients to absolutely refrain from opening new credit within 6 months of applying for a mortgage, as it certainly can hurt their chances overall. Basically...going in with a 750 or less score can indeed hurt you, but for someone with a high 700 score and solid income, you have much more leeway to obtain a new loan right before a new mortgage loan without it having much, if any affect on you at all, both in terms of rates and the amount of home you can afford.
As for my score, she said it should bounce back up to where it was previously in 6-12 months as things settle down a bit, and recommended not opening or closing any current accounts for the next year if possible. Lastly, she said my new car/installment loan certainly affected my score, as again its a new loan (which affects my overall age of acounts) coupled with the initial ding of getting the loan. But in terms of overall debt, it didn't have any affect there at all.
03-18-2013 01:40 PM
It could be worse. A LOT worse.
Mine dropped to 690 from 760 as a result of rebucketting.
03-18-2013 04:21 PM - edited 03-18-2013 04:22 PM
You can't avoid rebucketing. It is actually a good thing. It means you are moving from one group to the next. Kind of like going from the wading pool to the deep end.
When you are rebucketed, you are put in a similar scoring bucket and compared to everyone else in that group. It is a good thing because everyone isn't scored the same. For instance some one new to credit isn't in the same bucket as someone with a long history of credit.
03-18-2013 04:25 PM
forgive me but what is rebucketing, and how to you avoid it?
Credit scores are made from creating groups of similar people's credit history. For instance a thin file or a short file, files with chargeoffs or collections, and files with public records. Then variables within each group like utilization, and number of accounts with balances, are put together to determine score.
When you go from being in one group to another you can see large changes in your FICO score because they aren't matched up perfectly.
There is really nothing you can do to avoid it and your scores are as likely to go up as to go down when your "bucket" or grouping changes.
03-19-2013 07:25 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. 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.