topic Re: What does this mean? in Understanding FICO® Scoring

What does this mean?

Anonymous — Tue, 12 Jan 2016 14:23:05 GMT

I monitor my 3 credit scores daily on myfico. Yesterday I received a 3 point increase on Experian with the message 'new interest rate 3.881% on 30 year mortgage'.

My husband and I refinanced our home mortgage 22 months ago in Jan 2014. Other than that absolutely nothing has changed regarding our mortgage rate.

Why would it show up now and raise our score? Any thoughts?

Re: What does this mean?

Anonymous — Tue, 12 Jan 2016 19:45:17 GMT

It wasn't the cause of the score increase. It was simply the trigger for the alert.

Re: What does this mean?

Aahz — Tue, 12 Jan 2016 20:33:02 GMT

@Anonymous wrote:
I monitor my 3 credit scores daily on myfico. Yesterday I received a 3 point increase on Experian with the message 'new interest rate 3.881% on 30 year mortgage'.
My husband and I refinanced our home mortgage 22 months ago in Jan 2014. Other than that absolutely nothing has changed regarding our mortgage rate.
Why would it show up now and raise our score? Any thoughts?

As CAPTOOL stated, the increase has nothing to do with the alert. Most likely the increase is a result of age, inquiry falling off, or a minor balance adjustment.

But I'm hoping you can clarify something....

Is the 3.881% rate mentioned in the alert the same rate that you received in January 2014? Your wording makes this unclear to me.

Re: What does this mean?

iv — Wed, 13 Jan 2016 02:32:29 GMT

@Anonymous wrote:
I monitor my 3 credit scores daily on myfico. Yesterday I received a 3 point increase on Experian with the message 'new interest rate 3.881% on 30 year mortgage'.
My husband and I refinanced our home mortgage 22 months ago in Jan 2014. Other than that absolutely nothing has changed regarding our mortgage rate.
Why would it show up now and raise our score? Any thoughts?

I wish that MyFico would remove that "feature"... it confuses more people... and it's wrong these days, anyway.

Your score change was not due to a mortgage rate change.

When MyFico sees your score increase past certain thresholds, it flags that to "let you know that you may qualify for better mortgage rates".

Although since the score alerts are all FICO8-based these days, it's not just confusing - it's also wrong. (Since mortgage rates aren't based at all on FICO8 scores.)

Don't worry about it, it's just an outdated message triggered by the score increase (not the other way around).

Re: What does this mean?

azguy13 — Wed, 13 Jan 2016 02:54:11 GMT

@iv wrote:
@Anonymous wrote:
I monitor my 3 credit scores daily on myfico. Yesterday I received a 3 point increase on Experian with the message 'new interest rate 3.881% on 30 year mortgage'.
My husband and I refinanced our home mortgage 22 months ago in Jan 2014. Other than that absolutely nothing has changed regarding our mortgage rate.
Why would it show up now and raise our score? Any thoughts?
I wish that MyFico would remove that "feature"... it confuses more people... and it's wrong these days, anyway.

Your score change was not due to a mortgage rate change.

When MyFico sees your score increase past certain thresholds, it flags that to "let you know that you may qualify for better mortgage rates".

Although since the score alerts are all FICO8-based these days, it's not just confusing - it's also wrong. (Since mortgage rates aren't based at all on FICO8 scores.)

Don't worry about it, it's just an outdated message triggered by the score increase (not the other way around).

That always seems to trip people up. I wish they would remove it as well. Plus, it really isn't that accurate when it comes to vehicle loans.

Re: What does this mean?

ddemari — Wed, 13 Jan 2016 05:23:11 GMT

my iphone myfico app under settings and alert settings, you can turn off account alerts for interest rate notifcations for when you qualify for a new interest rate.