topic Re: FICO 8 vs Mortgage score in Understanding FICO® Scoring

FICO 8 vs Mortgage score

Anonymous — Sun, 15 Oct 2017 15:02:08 GMT

Hi,

I paid off 2 cards my fico 8 didn't change. I have 2 other revolving at 13% total. Does this mean my mortgage score didn't change either? I'm going to pull my mortgage score at the end of the month but I'm just curious.

Thanks
Anita

Re: FICO 8 vs Mortgage score

Anonymous — Sun, 15 Oct 2017 15:14:09 GMT

Are you sure that your paid off cards reported already to the bureaus?

Where are you pulling your FICO8 scores from?

Re: FICO 8 vs Mortgage score

Anonymous — Sun, 15 Oct 2017 15:16:10 GMT

Yes I paid them off it's showing on my credit profile. I have a subscription with FICO. Thx

Re: FICO 8 vs Mortgage score

Anonymous — Sun, 15 Oct 2017 15:21:07 GMT

Hard to make a forecast without knowing how many open credit card accounts you have total and what your highest utilization still is on any one account.

13% overall utilization is good but there isn't an obvious breakpoint reported for many until you're below 8.9% overall utilization.

In addition, 13% overall utilization could mean you are maxed out on one card but $0 or close to $0 on the rest, and the maxed out card could be keeping your scores down.

So my questions are:

What's the actual utilization on each card with a balance?
How many total open credit card accounts are reporting (with or without balances)?

Re: FICO 8 vs Mortgage score

Anonymous — Sun, 15 Oct 2017 16:57:14 GMT

Hi,

I have 3 open credit cards with 0 balance. The remaining credit card has a 13% utilization.

Thx

Re: FICO 8 vs Mortgage score

Anonymous — Sun, 15 Oct 2017 16:59:46 GMT

Interesting. Usually carrying a balance on more than 1/3rd of your cards and taking it down to 1 card should have an effect on at least EQ if not all 3 bureaus.

What are your current FICO8 scores on all 3 bureaus?

Re: FICO 8 vs Mortgage score

Thomas_Thumb — Sun, 15 Oct 2017 17:30:04 GMT

@Anonymous wrote:
Hi,

I have 3 open credit cards with 0 balance. The remaining credit card has a 13% utilization.

Thx

It looks like you went from 3 of 4 cards reporting a balance. I suspect your aggregate utilization now is around 3% with 1 card at 13%. Given your Fico 8 did not change, I would guess your aggregate utilization was already below 9% prior to paying off the two cards.

I don't see a change in Classic Fico 8 score between 1 of 5 cards and 5 of 5 cards reporting (AU card excluded). However, I do see score changes on my Fico mortgage scores when I go over 50% reporting balances - most pronounced on EQ.

Since you went from 75% (3 of 4) cards reporting balances to 25% (1 of 4) reporting your mortgage scores should have gone up. It's completely a guestimate but your Mortgage Fico score increases may be in the range of:

1) EQ Fico score 5 (Fico 04 model) => 20 points

2) TU Fico score 4 (Fico 04 model) => 10 points

3) EX Fico score 3 (Fico 98 model) => 5 to 10 points

Please report back on what you actually see.

Side note: A single card reporting 13% UT should have no negative impact on Fico 8 or Fico mortgage scores compared to reporting a trivial balance that represents less than 1% of the card's CL. The only exception would be if the 13% balance is high enough to result in an aggregate utilization of 9% or higher.