Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
Re: Please help verify or bust a myth...
Yes a mortgage loan is considered the most prestigious trade line to have as lenders know it requires more skill and discipline to obtain.

But how much your credit will increase depends on each person's profile. A new account and the associated inquiries almost always drops a score initially but after 6-12 months of on time payments to a mortgage loan (assuming no new apps during this time) should boost one's score nicely. But as one person mentioned, you will probably see a small increase right away just by having a new mortgage loan account as it will diversify your credit portfolio using the most prestigious trade line obtainable. The simulators I have used show a 10-30 pt boost in score based on adding a mortgage account to your credit report with more pts in the future after the gardening phase. YMMV of course.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014