topic Re: Fico Score Help in Understanding FICO® Scoring

Fico Score Help

Anonymous — Fri, 04 Feb 2022 23:20:54 GMT

I refinanced my mortgage which was completed 12/2021. After that was done I paid off my car loan. I also was pre-approved for a 2nd mortgage all in that time frame. Problem now is my fico's went from 810+ to 720-740. I have no other debt. Credit cards are reporting at 1%. No negatives at all. Hard pulls are from July-October (all mortgage related), all others over 2 yrs old. What time frame am I looking at it get back to 800 (or at least over 740 again)? I found the property I want to get but my drastic score change is going to be an issue and I have no time in today's market to flounder around.

Re: Fico Score Help

SouthJamaica — Sat, 05 Feb 2022 02:46:31 GMT

@Anonymous wrote:
I refinanced my mortgage which was completed 12/2021. After that was done I paid off my car loan. I also was pre-approved for a 2nd mortgage all in that time frame. Problem now is my fico's went from 810+ to 720-740. I have no other debt. Credit cards are reporting at 1%. No negatives at all. Hard pulls are from July-October (all mortgage related), all others over 2 yrs old. What time frame am I looking at it get back to 800 (or at least over 740 again)? I found the property I want to get but my drastic score change is going to be an issue and I have no time in today's market to flounder around.

If you were looking to get a new mortgage, and your FICO's were 810+, you ought not to have messed around with your profile.

Here's my advice:

1. Get a full 3B report from MyFICO so you can assess exactly where your mortgage scores are. They might not be as bad as you think, because FICO 8 scores are much more sensitive than the mortgage scores to changes in installment loan utilization, which is one of the factors you ruined (the other ones being inquiries and new accounts).

2. Don't take the 2nd mortgage.

3. Maintain your revolving accounts so that one bank card reports a small balance each month while all your other revolving accounts report zero balances.

4. Don't do anything that could trigger a hard pull.

Re: Fico Score Help

NRB525 — Sat, 05 Feb 2022 05:59:57 GMT

Has the refinanced mortgage reported yet? Did the previous mortgage stop reporting?

It seems odd that scores would drop that much just for installment / mortgage changes?

Did you talk with a banker to see whether this is affecting scores you would need for your planned purchase?

Re: Fico Score Help

FireMedic1 — Sat, 05 Feb 2022 10:14:13 GMT

@Anonymous wrote:
I refinanced my mortgage which was completed 12/2021. After that was done I paid off my car loan. I also was pre-approved for a 2nd mortgage all in that time frame. Problem now is my fico's went from 810+ to 720-740. I have no other debt. Credit cards are reporting at 1%. No negatives at all. Hard pulls are from July-October (all mortgage related), all others over 2 yrs old. What time frame am I looking at it get back to 800 (or at least over 740 again)? I found the property I want to get but my drastic score change is going to be an issue and I have no time in today's market to flounder around.

You refinanced your mortgage. Paid off a car loan. And lost 90 points? Something isnt adding up. Unless I'm missing something here. Or missed-read it. Have you pulled your free reports from annual credit reports lately. That sounds like a neg hit your reports. I've read your post 10x's. Two moves and a hit of that magnitude?

Re: Fico Score Help

SouthJamaica — Sat, 05 Feb 2022 15:21:21 GMT

@FireMedic1 wrote:
@Anonymous wrote:
I refinanced my mortgage which was completed 12/2021. After that was done I paid off my car loan. I also was pre-approved for a 2nd mortgage all in that time frame. Problem now is my fico's went from 810+ to 720-740. I have no other debt. Credit cards are reporting at 1%. No negatives at all. Hard pulls are from July-October (all mortgage related), all others over 2 yrs old. What time frame am I looking at it get back to 800 (or at least over 740 again)? I found the property I want to get but my drastic score change is going to be an issue and I have no time in today's market to flounder around.
You refinanced your mortgage. Paid off a car loan. And lost 90 points? Something isnt adding up. Unless I'm missing something here. Or missed-read it. Have you pulled your free reports from annual credit reports lately. That sounds like a neg hit your reports. I've read your post 10x's. Two moves and a hit of that magnitude?

I agree with you that the post doesn't add up, but it is very vague as to many things, including what scores the OP is talking about. Until we get more information we're not going to be able to solve OP's problem.

Re: Fico Score Help

disdreamin — Sat, 05 Feb 2022 18:12:56 GMT

I'm with the others saying something doesn't seem to be aligning properly. I paid off my mortgage and auto loan last summer - my only installment loans at the time - and took out a new auto loan the next month. I also opened a couple new credit cards and had my credit pulled a couple times for auto loan preapprovals. My scores dropped a max of ~45 points [FICO 8] with all of that included.

Losing 90 points for fewer changes seems rather extreme and I'd be taking a long, careful look at my reports to see what exactly is going on if I were in OP's shoes.

Edited to add: I just checked my mortgage scores and they are 801, 795, and 795 - it's funny, my mortgage scores and FICO 8 are all within 10-15 points of each other. I don't know if I've ever noticed that before

Re: Fico Score Help

Anonymous — Sun, 06 Feb 2022 14:12:54 GMT

That is why I am also confused. I have gone through the reports. Nothing has been added negative and there won't be because there isn't anything. The new mortgage is not reporting yet. The car loan paid off is. Everything has remained steady. The second mortgage is not going to change. I am looking for a larger property and have to be ready to pounce when it is listed. I just missed one I wanted because my realtor was busy and didn't get on it for a couple of days. I have not spoken to my lender to see how the change will affect things, but I assume it will be in the interest department. I have an account with Fico here to check all scores. Not talking about Vantage.

Re: Fico Score Help

SouthJamaica — Sun, 06 Feb 2022 14:18:51 GMT

@Anonymous wrote:
That is why I am also confused. I have gone through the reports. Nothing has been added negative and there won't be because there isn't anything. The new mortgage is not reporting yet. The car loan paid off is. Everything has remained steady. The second mortgage is not going to change. I am looking for a larger property and have to be ready to pounce when it is listed. I just missed one I wanted because my realtor was busy and didn't get on it for a couple of days. I have not spoken to my lender to see how the change will affect things, but I assume it will be in the interest department. I have an account with Fico here to check all scores. Not talking about Vantage.

Please pull your current 3B report and your previous 3B report, and advise as to the changes if any in (a) your mortgage scores, and (b) your reported data.

With that information we can give you a coherent answer to your question, and give you advice as to how to improve your mortgage scores if they need improvement.

Re: Fico Score Help

Anonymous — Sun, 06 Feb 2022 14:41:05 GMT

TU 812, EX 813, EQ 809 Says new inquiry added to account (mortgage shopping). TU score decrease 58 points to 754. Others follow suit. Account balance decreased by $784 (I pay off all accounts every month for no interest which that reflected. One card always reports at 1%). Scores continue down. Only activity says score decreases. No associated reason for decreases. No late payments. No collections. No high utilization. No changes aside from what I already stated: car loan 1 yr 10 months paid in full. House refinanced. Pre approval for 2nd mortgage.

Re: Fico Score Help

disdreamin — Sun, 06 Feb 2022 14:50:32 GMT

Am I reading it correctly that you've got no installment loan reporting? Could credit mix be playing into this?

What is surprising is that our scores were very similar and my scores were impacted FAR less for PIF mortgage and auto loan. How thick is your file and roughly what is AAoA, if you don't mind me asking? Also, if you have have access to them, how significantly were your mortgage scores impacted?

Re: Fico Score Help

Anonymous — Sun, 06 Feb 2022 15:34:15 GMT

I do not currently have access to my mortgage scores. I dropped that after getting everything locked in. AAoA is sitting at 12.5 yrs. 6 top tier credit cards. And I was incorrect, as of checking this morning, the new mortgage is reporting from the refi.

I wondered about credit mix when the auto loan went, but the mortgage is still there unless it needs to rebound?

Re: Fico Score Help

SouthJamaica — Mon, 07 Feb 2022 02:08:39 GMT

@Anonymous wrote:
TU 812, EX 813, EQ 809 Says new inquiry added to account (mortgage shopping). TU score decrease 58 points to 754. Others follow suit. Account balance decreased by $784 (I pay off all accounts every month for no interest which that reflected. One card always reports at 1%). Scores continue down. Only activity says score decreases. No associated reason for decreases. No late payments. No collections. No high utilization. No changes aside from what I already stated: car loan 1 yr 10 months paid in full. House refinanced. Pre approval for 2nd mortgage.

Without the following information, neither I nor anyone else can answer your question:

1. The mortgage scores for the previous report. (TU 4, EX 2, and EQ 5).

2. The mortgage scores for the newer report. (TU 4, EX 2, and EQ 5).

3. The changes in data shown in the report. (No alerts, or comments, or reason codes, or what is "said" about activity, or what you believe are "associated reasons". Just the differences in data based on your review of both 2 reports).

Re: Fico Score Help

SouthJamaica — Mon, 07 Feb 2022 02:10:27 GMT

@Anonymous wrote:
I do not currently have access to my mortgage scores. I dropped that after getting everything locked in. AAoA is sitting at 12.5 yrs. 6 top tier credit cards. And I was incorrect, as of checking this morning, the new mortgage is reporting from the refi.

I wondered about credit mix when the auto loan went, but the mortgage is still there unless it needs to rebound?

Then we can't answer your question. You can certainly pay for a 3-bureau report and find out what's in your current report, including what your current mortgage scores are.