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Shafter
Posts: 4
Registered: ‎01-22-2013

Mortgage Question

On my credit report, I have a mortgage company that reports a zero balance which is correct.  The account does not appear to be closed.  Does the payment amount showing go against my credit score.  Should I contact the mortgage company and have it removed or the credit reporting agentcies.

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llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Mortgage Question

No, it isn't hurting. Whether reporting opened or closed, FICO still scores all $0 balance loans as closed, regardless of the reported status. The assumption is that you never can reopen a new loan without getting a new one. 

 

FICO also ignores the payment amount. That's not a part of FICO scoring. Under a manual review, lenders do consider it, however if the balance is $0 then the assumption is made that it is paid. My mortgage lender ignored all minimum payments on any $0 balance accounts.

 

I wouldn't touch that account. There's always the risk of them deleting it. And if changed it wouldn't help anything anyway.

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: Mortgage Question


llecs wrote:

No, it isn't hurting. Whether reporting opened or closed, FICO still scores all $0 balance loans as closed, regardless of the reported status. The assumption is that you never can reopen a new loan without getting a new one. 

 

FICO also ignores the payment amount. That's not a part of FICO scoring. Under a manual review, lenders do consider it, however if the balance is $0 then the assumption is made that it is paid. My mortgage lender ignored all minimum payments on any $0 balance accounts.

 

I wouldn't touch that account. There's always the risk of them deleting it. And if changed it wouldn't help anything anyway.


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