cancel
Showing results for 
Search instead for 
Did you mean: 

Rapid rescoring question

Established Member

Rapid rescoring question

Hello everyone,

 

I've starting the process of applying for a mortgage and unfortunately my scores were not great when checked the by the loan office (717, 718 and 753). I am trying to qualify for the best rate possible since it's going to be a jumbo loan. The loan officer recommended that I pay off my credit card balances and to do a rapid rescore afterward. He said their system predicts that my score "may" go up 25 points if I do that. While he seems very confident, I am not sure if this is going to be the case. I used the simulator on myfico and it predicts my score will be between 727-765 once I pay off my credit card balances. Any thoughts on how accurate those predictions are?

 

I also have a couple of car loans, would reducing (not paying off) the loan amounts help?

 

Thank you for your input

 

 

Message 1 of 4
3 REPLIES
Moderator

Re: Rapid rescoring question

Paying off credit cards and lowering your revolving utilization might help your FICO (depends what your utilization is at now and which cards are being used, etc) and it's potentially a large bonus, but kicking money to an installment tradeline like an auto loan doesn't help in the same way and has much less if any impact on the score.

 

The loan officer gave you reasonable general advice for credit cards but it may or may not apply to you; if you post what your balances and limits are here there's plenty of people who can give you advice as to whether it would help any or not.  The simulator is can be hit or miss on how much the score might move, it's hard to predict, but people here can easily give suggestions as to whether you can do better or not.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 2 of 4
Established Member

Re: Rapid rescoring question

I have already paid off all my credit card balances. I guess I'll have to wait and see what effect this has on my score. Utilization was between 5-35% on all my cards so I guess that wasn't good. No it should be zero on all of them except one with a couple of hundred dollars which is the best case scenario as far as I know.

Thanks for the info especially regarding the car loans.

 

Message 3 of 4
Highlighted
Moderator

Re: Rapid rescoring question


RD82 wrote:

I have already paid off all my credit card balances. I guess I'll have to wait and see what effect this has on my score. Utilization was between 5-35% on all my cards so I guess that wasn't good. No it should be zero on all of them except one with a couple of hundred dollars which is the best case scenario as far as I know.

Thanks for the info especially regarding the car loans.

 


Yup, should be good on the rapid rescoring bit as that's about as ideal as it can get; though I'd wait a few days for the tranactions to post: rapid rescoring gets the creditors to submit an out of cycle update to the bureaus as I understand it.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 4 of 4