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Fico simulator and mortgage fico.

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Anonymous
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Fico simulator and mortgage fico.

Hello everyone,

Looking at the simulator, if I make a payment on my student loan it is indicating a 10-15 point increase on MyFico 8 score. A larger payment a bit larger increase. Does anyone know how that would translate to the FICO mortgage score?

Thank you!
Message 1 of 6
5 REPLIES 5
Anonymous
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Re: Fico simulator and mortgage fico.

Paying down installment debt is not a reliable tactic for the mortgage scores.  (I.e. it will probably get you nothing, though some people think it might help a tiny bit with your EX score.)

 

Do you have all your cards (except one) reporting $0?  (With the remaining card reporting a small balance.)  This is by far the simplest and fastest way to gain fast increases to your mortgage scores.

 

PS.  Simulators are in general very unreliable, whether for FICO 8 or the mortgage models or whatever.

Message 2 of 6
Anonymous
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Re: Fico simulator and mortgage fico.

Thank you!

All my cards (3) are $0 except 1 which has a small balance. Working on gw letters for deletions of lates. One small success so far. Just looking at all possibilities.

Message 3 of 6
Anonymous
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Re: Fico simulator and mortgage fico.

It's impossible for a simulator to ever predict a potential score increase from making a payment on an installment loan, as simulators don't look at aggregate installment loan utilization. That's really the only thing that matters, and simulators can't see that data. Cornelius may pay down $100 of his installment loan debt and see a 20 point increase where Rupert may pay down $20,000 in installment loan debt and see no score increase. What we don't see and what simulators can't see is that Cornelius has only one open installment loan for $500 that he just paid from $140 down to $40 where Rupert just paid his $800k mortgage down from $380k to $360k.
Message 4 of 6
Anonymous
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Re: Fico simulator and mortgage fico.

This is good information.  i actually paid down my credit cards by $400 last month and my Experian credit score dropped 24 point; however, my FICO 2 mortgage score jumped about 10 points.  I'm going to pay another $1,000 on my credit cards this month and my Mortgage FICO will jump again.  Trying to get my Mortgage FICO as high as possible to close on a house by end of year with the best percentage rate.  I will have my credit cards paid off completely, except for $10 on one card in early December, again helping my Mortgage FICO be as high as possible for interest rate purposes

Message 5 of 6
Anonymous
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Re: Fico simulator and mortgage fico.


@Anonymous wrote:

This is good information.  i actually paid down my credit cards by $400 last month and my Experian credit score dropped 24 point; however, my FICO 2 mortgage score jumped about 10 points.  I'm going to pay another $1,000 on my credit cards this month and my Mortgage FICO will jump again.  Trying to get my Mortgage FICO as high as possible to close on a house by end of year with the best percentage rate.  I will have my credit cards paid off completely, except for $10 on one card in early December, again helping my Mortgage FICO be as high as possible for interest rate purposes


It sounds like you're implementing AZEO, which is a great thing to do.  If you had balance still reported on one of your cards following your $400 pay down last month, your credit score did not drop 24 points as a result of paying down $400.  If paying down $400 resulted in you reporting ALL zero balances then yes, it would be possible that you lost a chunk around 24 points.

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