topic Re: Hurting your score: There is insufficient information about mortgage accounts. in General Credit Topics

Hurting your score: There is insufficient information about mortgage accounts.

Anonymous — Mon, 08 Apr 2013 20:04:23 GMT

Hello folks......I got my report from the 3 CRA, and it shows that an element hurting my score is insufficient info about my mortgage.

I sold my house in 2011, mortage paid off. Never defauled, never had a late payment. Can someone advise how I can address this issue.

Here is the note and comment on my report

There is insufficient information about mortgage accounts.

You either have no mortgage accounts, or there is insufficient information about mortgage accounts, in your credit file. People without mortgage accounts or those who do not have sufficient information about mortgage accounts are considered riskier by lenders. It is important to have various types of credit that are held in good standing in your credit file, including mortgage accounts.

Comments:

Account Status: As Agreed As Agreed As Agreed
Past Due Amount: $0 $0 $0
Comments: ACCOUNT PAID REAL ESTATE MORTGAGE

DISPUTE RESOLVED REPORTED BY GRANTOR

DISPUTE RESOLVED PAID CURRENT ACCOUNT LAST PAID: 06/2011

Re: Hurting your score: There is insufficient information about mortgage accounts.

Simply827 — Tue, 09 Apr 2013 18:21:21 GMT

Sometimes things the CRAs say affect your score negatively aren't really counted by FICO. You don't need to have an open mortgage account to have a good FICO score. Your old mortgage should still be reporting and be factored into your FICO score since FICO takes into consideration both open and closed accounts.

Re: Hurting your score: There is insufficient information about mortgage accounts.

boomhower — Thu, 11 Apr 2013 03:39:34 GMT

@Simply827 wrote:
Sometimes things the CRAs say affect your score negatively aren't really counted by FICO. You don't need to have an open mortgage account to have a good FICO score. Your old mortgage should still be reporting and be factored into your FICO score since FICO takes into consideration both open and closed accounts.

Are you sure? I had always been under the impression you had to have an active account for it to factor into the credit mix portion of your score. At any rate it's a very small part of your score and not worth stressing over. It is still there under a manual review which is the important part.

Re: Hurting your score: There is insufficient information about mortgage accounts.

dddewdrop — Thu, 11 Apr 2013 13:50:11 GMT

What range are your credit scores in? Also, when you receive FICO scores and then receive guidance on what is effecting your scores, the first 2 reasons or items are usually way more important than the last 2. If you have really good scores and no real problem areas in your report then sometimes the software kind of grasps at straws for ways to improve your report and this may be what is happening in this case.