topic Dirty Score Card CC Balance AZEO Question in Mortgage Loans

Dirty Score Card CC Balance AZEO Question

Newfhntr — Sat, 03 Feb 2024 20:06:48 GMT

I have 3 credit cards.

Cap1 $0 balance with $500 limit

ML $284 balance with $750 limit

Credit Union $909 balance with $5000 limit.

This month I will have the ability to pay them all off. My goal is bumping my mortage scores, and I am on a dirty scorecard. My goal is to do all zero except one. But the credit union card does not report to EX. So I am guessing I need to leave a $10 balance on one of the cards that report to all 3 credit bureaus. Is that correct?

Re: Dirty Score Card CC Balance AZEO Question

pizzadude — Sun, 04 Feb 2024 04:17:43 GMT

@Newfhntr wrote:
I have 3 credit cards.
Cap1 $0 balance with $500 limit
ML $284 balance with $750 limit
Credit Union $909 balance with $5000 limit.

This month I will have the ability to pay them all off. My goal is bumping my mortage scores, and I am on a dirty scorecard. My goal is to do all zero except one. But the credit union card does not report to EX. So I am guessing I need to leave a $10 balance on one of the cards that report to all 3 credit bureaus. Is that correct?

Yes, I'd start with that approach and see what your mortgage scores look like. Have you pulled them recently to see where you stand with your current revolving utilization?

Re: Dirty Score Card CC Balance AZEO Question

Thomas_Thumb — Mon, 12 Feb 2024 17:08:50 GMT

Mortgage Ficos are quite sensitive to # of accounts with balances. It is best to report a balance on one card only.

There have been reports that some CU cards are not classified as proper revolving accounts. Given this possibility it is best to have the CU card report a $0 balance and one of the other cards report a small balance (say $5 to $40).

Why? If the CU card is ignored as a revolver and the other cards report $0, you will get hit with the "no recent revolving activity" penalty. That penalty is nominally 20 points.

However, since your CU card has a much higher CL, you may want to test how it is reporting. If it is the only card with a balance and you see no score drop and don't receive a "no recent revolving activity" statement from Fico, then your CU card is counting.

P.S. The reporting card's balance should be under 9% of the card's CL. Using a higher limit card provides more balance reporting flexibility.