topic Re: Mortgages and FICO-calculations in General Credit Topics

Mortgages and FICO-calculations

ScoreBooster — Tue, 20 Jan 2009 20:25:36 GMT

Hi,

Does anybody know if the FICO-scoring gives an extra credit for having a mortgage on file or is it just considered a regular installment-account?

I'm asking because I have a transferred account on file with no lates BUT it was only reported for 7 months before it was transferred. When working on my clean-up, should I try to remove this account because it might have a negative affect due to its short history (reducing my average age of accounts) or should I keep it for a better "mix" (as I said, I don't know if FICO considers a mortgage just to be a simple installment-loan or if "mortgage" is a separate account-sector). This account isn't my oldest (or should I say, first established) account either...

Thanks!

Re: Mortgages and FICO-calculations

ScoreBooster — Wed, 21 Jan 2009 04:23:35 GMT

UPDATE:

Never mind. Since I learned today that even closed accounts still "age" and improve your AAoA, there is no need to take any action. But thanks for reading!

Re: Mortgages and FICO-calculations

Junejer — Wed, 21 Jan 2009 07:25:52 GMT

And here I was ready to give you a great dissertation on the finer points of credit mix in FICO scoring.

Mortgage is treated as installment for credit mix purposes.