topic Re: Mortgage Reporting = Score Increase??? in Understanding FICO® Scoring

Mortgage Reporting = Score Increase???

Anonymous — Sun, 21 Jan 2018 00:24:37 GMT

My new mortgage reported on TU and EX last week, less than 1 week after closing! Holy fast! Both bureaus showed a sizable increase, 16 pts on TU and 28 pts on EX. I already had installment loans (over 100% utilization), so I'm not quite sure why my scores went up! I also applied for a few credit cards and so far one is reporting. Previously had 6 with 1% aggregate utilization, now I have 9, so no barriers were crossed there. Thoughts? Does the mere presence of a mortgage on reports cause an increase? I don't have anything due to fall off until 2019, and even then there are more derogs that would hold my score down.

Re: Mortgage Reporting = Score Increase???

Anonymous — Sun, 21 Jan 2018 01:07:54 GMT

If your other installment loans were at or near 100% utilization, adding a 100% utilization mortgage into the equation really wouldn't do anything, as aggregate installment loan utilization would remain the same. The added new accounts if anything would decrease your AAoA, so that would not result in an increase. It wouldn't necessarily create a decrease, though. Something else must have changed IMO to cause the score increase. You say that nothing fell off, but perhaps something negative that's significant aged past a certain breakpoint?

Re: Mortgage Reporting = Score Increase???

Anonymous — Sun, 21 Jan 2018 01:54:38 GMT

Hmm....I do have some lates from January 2016, is two years a break point? Would it go by date or month? That might be it, but I thought I had a more recent one from February or May...

Re: Mortgage Reporting = Score Increase???

Revelate — Sun, 21 Jan 2018 17:24:48 GMT

@Anonymous wrote:
Hmm....I do have some lates from January 2016, is two years a break point? Would it go by date or month? That might be it, but I thought I had a more recent one from February or May...

It would go by month generally.

We haven't seen people get big jumps from mortgages, quite the opposite; I don't know on FICO 8 as there is a pattern of lates penalty and more tradelines might influence that or aging of individual lates even, but that's a serious, serious strech that even I'm incredulous of, but I'm more inclined to believe you hit a breakpoint elsewhere.

Where are you seeing the change? Vantage apparently loves a mortgage, but FICO either dropped or *shrugged* for me depending on specific model.

Re: Mortgage Reporting = Score Increase???

Anonymous — Mon, 22 Jan 2018 15:07:14 GMT

@Revelate wrote:
@Anonymous wrote:
Hmm....I do have some lates from January 2016, is two years a break point? Would it go by date or month? That might be it, but I thought I had a more recent one from February or May...
It would go by month generally.

We haven't seen people get big jumps from mortgages, quite the opposite; I don't know on FICO 8 as there is a pattern of lates penalty and more tradelines might influence that or aging of individual lates even, but that's a serious, serious strech that even I'm incredulous of, but I'm more inclined to believe you hit a breakpoint elsewhere.

Where are you seeing the change? Vantage apparently loves a mortgage, but FICO either dropped or *shrugged* for me depending on specific model.

I just double checked my TU report and my most recent late was May 2016, so that isn't it. My FICO8 TU and EX scores are showing the 28 and 16 point increases, still have yet to see anything on Equifax. And yes, Vantage looooves mortgages - TU went up 93 points nothing on EQ as it hasn't yet reported there. I am very confused!

Re: Mortgage Reporting = Score Increase???

Anonymous — Tue, 06 Feb 2018 00:24:40 GMT

Mystery solved! For some reason, my mortgage is reporting with a balance of $277 dollars rather than at 100%. Pretty sure that would do it!