11-28-2012 07:16 AM
Im looking to do some apping after the first of the year. EX is my strongest report and I will be focusing on lenders that pull Ex. I was reviewing m 3-in-1 FAKO's, and I noticed EX is calling my Mortgage an installment loan, while the other 2 are calling it a Real Estate Loan. My Ex report states I have no Real Estate loans.
My question is this, is this mis-categorization exclusive to the FAKO report, or is there a chance that a FICO EX report will have the same mis-categorization. IF so, am I correct to think that this issue could be costing me about 10 points, which could be vital as I think my EX FICO has the possibility of hitting the low 700's. Or is this something not worth disputing.
11-28-2012 07:56 AM
Third-party reports always mischaracterize the totals, IME anyway. I'd ignore it. The TL has these hidden codes by which FICO scores off of. There wouldn't be any reason for the lender to miscode only one report, when it's the same data presented to all 3. Make sense? If all 3 ignored the mortgage classification, then I'd suggest pulling all 3 reports directly from the CRAs, but I don't see a need to do that.
Per the FICO difference, I think 10 points is too far off. There are several within these forums who topped the FICO scale without a mortgage. I know when I added mine after renting forever, I lost just as many points as I normally do when adding a CC, which tells me that it's not a big deal to mix. It can be a big deal to FAKO scoring though, if that matters any.
11-28-2012 06:08 PM
What is the loan type on the Experian credit report for your mortgage? Ie the field that would show car loan, credit card etc. The scoring computation would be using that not the account type field. What you are looking it is the field the reports Revolving, Installment, etc which the the account type field.
11-29-2012 03:42 PM
Glad you had me check that out. Its a USDA loan through Chase, but for some reason its listed as an agriculrure loan. I just hope FICO isn't making this same mistake.
01-24-2013 11:47 AM
Just an update...
Freecreditreport.com has a '?' in the place where it lists what kind of account my mortgage is. I decided to dispute this with Ex, in fear that this mistake may be costing me a few points. When you dispute through freecreditreport.com, it takes you to EX's website, shows you your experian report, and allows you to dispute from there. On the report pulled directly from the experian website the mortgage is listed as a mortgage. Therefore, there was nothing to dispute. So what should be my next move?????
Normally I really wouldnt care. But I plan on apping for a loan through prosper in March, which is when the util on my Ex report will be low enough, where I feel comfortable apping. Prosper uses a FAKO score to approve their loans. Just for kicks, about 2 weeks ago I apped just to get the FAKO score they use, knowing Id probably get denied. I got denied as their FAKO had me at 622 and they require a 640. IN the AA letter, it listed high utilization and the absence of a mortgage as things that were hurting my score. Prosper uses credit.com and they have my mortgage listed as an installment. With prosper, every little bit counts, in regards to points v APR. So I would really like to get this little quirk fixed, if possible.
Anyone know of anything I can do to get the 3rd partys to correctly classify my mortgage??
. I checked my FAKO over there again and its now 668, since my util has gone down a bit. Its going to go down a bit more before I app, and having my mortgage classified correctly may make my approval a little bit easier and may payment a little bit lower.
01-24-2013 06:09 PM
How is it reporting on your FICO credit report? Which is still considered a Third Party Report.
How is it reporting on your yearly FREE annualcreditreport.com? This is the report that has the correct up to date information on your records.
The information reported on your annualcreditreport.com is the only information that matters. No reason to dispute third party information as it really holds no value.
Just a reminder that the information on annualcreditreport.com is the most up to date INFORMATION ONLY. The scores on annualcreditreport.com are meaningless, so if you decide to purchase them, just ignore them.