Reply
Member
RD82
Posts: 12
Registered: ‎05-05-2011
0

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

 

 

Moderator
Revelate
Posts: 9,413
Registered: ‎12-30-2011
0

Re: Rapid rescoring question

[ Edited ]

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 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge
Member
RD82
Posts: 12
Registered: ‎05-05-2011
0

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.

 

Moderator
Revelate
Posts: 9,413
Registered: ‎12-30-2011
0

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 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}