Credit Cards Center Credit cards from our partners
Reply
Established Member
Posts: 14
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 Emeritus
Posts: 14,868
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 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 693, EQ 8 716, TU 8 713, EX 8 740 (09/06/16)
Goal Score: 700 on EQ 04 (01/01/17)


Take the myFICO Fitness Challenge
Established Member
Posts: 14
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 Emeritus
Posts: 14,868
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 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 693, EQ 8 716, TU 8 713, EX 8 740 (09/06/16)
Goal Score: 700 on EQ 04 (01/01/17)


Take the myFICO Fitness Challenge

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.