topic Re: Credit Score Question in Understanding FICO® Scoring

Credit Score Question

Anonymous — Sat, 12 May 2007 00:04:36 GMT

A mortgage was removed from my credit, always on time, and significantly reduced my overall debt. I noticed my credit score went down? I do not understand, any thoughts? Thanks

Re: Credit Score Question

Anonymous — Sat, 12 May 2007 00:23:44 GMT

Anwser is in your question.

Your score is based on many different things of wich some are how long your accounts are open and if that history is positive.

Wnen they remove account with long and positive history, your score will drop.

I hope this is correct since I'm batter in questions than anwsers.

Message Edited by cinoeye on 05-11-2007 05:23 PM

Re: Credit Score Question

Anonymous — Sat, 12 May 2007 05:17:42 GMT

Definitely try and get that mortgage back on there...as long as it is in good standing, mortgages definitely help your FICO.

One of the aims of credit scoring is to separate the "haves" from the "have-nots." Having a mortgage definitely makes you a "have," and the scoring system is designed to give you props for having one.

Re: Credit Score Question

Anonymous — Sat, 12 May 2007 11:01:04 GMT

Thanks, I should have clarified, it is still on my credit report as a trade line, but paid with a zero balance

Re: Credit Score Question

Anonymous — Sat, 12 May 2007 11:50:54 GMT

Oh, so when you say that it was removed from your credit you didn't mean from your CR's, you meant from your overall current debt - you just paid it off and then your score dropped? If so, I've read here that others have had a slight temporary drop in score once a tradeline was paid and closed. However, in the big picture, as long as it remains on your CR and had a positive payment history, it should be very valuable to your score as all of your accounts age and you continue to use credit responsibly.

Re: Credit Score Question

Tuscani — Sat, 12 May 2007 14:49:48 GMT

I assume it is paid and closed right? If so, it is normal to take a short term hit.

Re: Credit Score Question

Anonymous — Sat, 12 May 2007 20:09:12 GMT

Thanks for the feedback, it seems that once you pay something off and reduce your debt you take a hit, which is counter intuitive to what you think should happen.

Re: Credit Score Question

Tuscani — Sat, 12 May 2007 20:14:51 GMT

dataanalyst wrote:
Thanks for the feedback, it seems that once you pay something off and reduce your debt you take a hit, which is counter intuitive to what you think should happen.

I know.. its weird. There are lots of little caveats to credit repair and scoring.