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MyFICO Sim: pay off all my loans for +35pts?

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CreditDunce
Valued Contributor

Re: MyFICO Sim: pay off all my loans for +35pts?


@Anonymous wrote:

more detail:

 

EQ Score 8:   +29 pts

EQ Score 5 (mortgage):  +0 pts  Smiley Sad

EQ Score 8 Auto:  +38 pts

 

TU Score 8:   +26 pts

TU Score 4 (mortgage):  +8 pts

TU Score 8 Auto:  +43 pts (to 783!)

 

EX Score 8: +31 pts

EX Score 2 (mortgage):  +17 pts (to 764)

EX Score 8 Auto:  +36 pts

 

 

So, you can see the mortgage scores have the most variance.  I'm happy to see at least two of them jumped.  It was certainly enough to make a difference in my middle score and now I'm (hopefully) comfortably above 740 in order to get good mortgage rates.

 

It's funny too, because the simulator says that when I get a mortgage, my scores will drop back lower to ~717ish... oh well haha


Thanks for the scores updates.  Congratulations on your score increases.  It really looks like you are in a good position score wise for a mortgage.  Good luck.

Message 21 of 22
Revelate
Moderator Emeritus

Re: MyFICO Sim: pay off all my loans for +35pts?


@CreditDunce wrote:

@Revelate wrote:

@CreditDunce wrote:

@Anonymous, I appreciate your excellent work in figuring out installment loans provide most of their benefit by simply paying down the balance.  Do we have data points showing auto and student loans use the same rules as shared secured?  I would assume they do, but was hoping the OP could confirm it for student loans.


I would suggest auto loans do from my own findings: I had a near identical drop in my scores when I paid off my auto loan, and then paid off my secured loan as to the gain that occurred with paying down my remaining two loans.  Napkin mathing the aggregate percentages were similar though it's possible the breakpoint may be higher than 10%, I'd have to go look at some old reports to see what the exact numbers were.

 

I don't know Student Loans at all but I would assume they do: I've never seen a FICO reason code that involved student loans, so I'm pretty confident they fall under the generic installment history much like auto loans seemingly do.  Mortgage is the big unknown really for this, if I drop 25ish point across the board whenever my mortgage reports then think we can be moderately confident that they don't count seperately; however, real estate is broken out in the reason codes on some models so it might be counted differently both for mix of credit and for installment utilization.

 

Still making that CSP app before it reports just in case Cat Tongue


Thanks for the info.  It is just academic curiosity on my part.  But it is interesting.  I think my hesitation completely believing auto, student and shared secured are all the same is the way CK formats their reports.  They have Real estate, auto, student and other (in that order).  Psychologically, I think it is influencing me to think of them as differerent from a FICO standpoint.

 

In addition, there are the auto enhanced FICO models making me think the different categories must come into to play some how.

 

Thanks


Auto enhanced are really very unknown: we did have a F&I guy on here for a while that suggested that student loans didn't seem to obviate the first time buyer penalty that he'd seen in the past: not exactly hard data, but at least something in his experience of looking at hundreds of files and scores.  I can state though that if you look at the installment utilization thread, my FICO 8 Auto Enhanced scores all moved substantially with the experiment in addition to the standard FICO 8 models.  I do have two paid auto loans on my reports though.

 

You're right though, auto does have a breakout at least in the mortgage trifecta from the Credco information sheet they publish.

 

Lack of recent auto loan information

 

That said, I'd really try to avoid making any conclusions from Credit Karma's interface; it is nowhere close to reference including some things which are laughably absurd under both FICO and Vantage... Average Age of Open Accounts, or the fact they ignore my lates on my BOFA tradeline because it's closed *snort*




        
Message 22 of 22
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