In the 800 club (Temporarily). Should I app or not (and more questions)?

[Anonymous]

Crossed a few thresholds getting Cap one from > 88% to 0 over 3 months. Disco has gone from 65% to < 1% and agg. Util is now < 2% from over 30%. Scores saw a substantial boost… EX is now 809 (waiting for Disco to update the other 2, but at 776 & 760).

I say temporarily because I was approved for a Lightstream loan a few weeks ago. The effects of it (and the Hard Inquiry from EQ) have not hit my CR yet… I had an auto loan fall off 2-3 months ago and took a serious ding across all 3 CRB’s (only active installment loan + I had high util on Disco & Cap1). I know I’ll be able to knock this loan down to at least 50% over a year (it is a 5 year loan) so I know I can recover some points after the initial ding. I want to keep it until I get a mortgage (to avoid having no installment loans).

Here are the questions (and concerns):

I have 4 revolvers:

Amazon 0/15K

Lowes 0/25K

Cap1 0/12.5K

Disco $600 / 22.5K

All of them were open around the same time, ~ 2015. 4 years, 2 months.

AAoA is 13 years, 7 months, but that includes 3 student loans for 28 years, paid in full 2 years ago and an auto loan from 2016, paid in full a few months ago, and a SAMS card opened in 2004 & closed who knows when.

I hit 850 with this configuration once I crossed the threshold (whatever it was) on the auto loan, and was doing AZEO. Lost quite a few points due to having to carry balances on Cap1 & Disco near max for over a year, but that’s solved. I could never get past 799 on TU doing AZEO without the car loan. The other 2 were stuck about 10 points higher.

Now… I’m back where I was, with the potential to hit 850 again, but there’s this everlasting problem of only being able to get loans for 1-5 years, then having them drop off. It will also be time (hopefully) for a mortgage in a year, depending on market conditions and other finances.

I really don’t “need” more revolvers, but would not mind having CSR and/or Amex Platinum for the travel rewards & Lounge access. That’s if I’m off both of their blacklists after ~13 years. I can test the waters with AMEX first, as I’d be denied without a HP.

Suppose I do intend on a mortgage in a year. How bad are 1 or 2 revolvers going to ding aging by then with the 4 I have now?

And if I don’t get a mortgage, will an extra 1 or 2 revolvers help in a few years when my only installment loan falls off?

Next question – Age of newest account – When it reports, LS will be the newest. Suppose after a year I pay it off (which I would do at some point after getting a mortgage). Would the Newest Account age drop off and revert back to one of the revolvers, or does it still count?

Or to ask another way, after 4 revolvers, how much does another one or 2 help to thicken a file, and would the negative effects of new credit wear off in a year so I’d qualify for a mortgage?

And more questions…

If I app for AMEX, say I wanted a credit card, like BCE and charge ie: Platinum. Can I app for both with one EX HP? If so, what is the strategy to do it. Same question with Chase: Freedom & CSR.

How does charge card (AMEX Plat.) affect scores? Specifically, utilization? Isn’t that impossible to calculate?

Sorry for the list of questions, just not sure if I should leave things alone right now or thicken the file (and how).

[AllZero]

Get your mortgage scores first before you can determine your path; EX2, TU4, EQ5

It is recommended not to apply or obtain new accounts 12 months leading up to a mortgage.

[Anonymous]

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@AllZero wrote:
Get your mortgage scores first before you can determine your path; EX2, TU4, EQ5

It is recommended not to apply or obtain new accounts 12 months leading up to a mortgage.

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I plan on refreshing the 3B after Disco updates Fico 8, on TU & EQ,  then again after Lightstream reports & I take a ding. I most definitely plan on waiting a year after last account is opened before apping for a mortgage. My best window (if I'm going to utilize it) is either right now (while the new loan is not on there), after the loan reports, or not at all.  I guess the "safe solution" is wait for the loan to report, then refreshing everything, but it will be lower & I lose another month or two.

[Anonymous]

EX updated again & the loan is now on my CR there. I lost 2 points (went from 809 to 807). Not nearly as big of an issue (at least on there) as I thought it would be, so certainly going to wait this out and decide later.

Interestingly enough -- MyFico did not update EX when Disco reported 2 days ago. With my Experian sub, I was able to see the 35 point jump to 809, then the 2 point decrease after the loan was added. I still do not have TU & EQ updates on myFico, so waiting for those before I refresh all 3.

[HeavenOhio]

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@Anonymous wrote:

I want to keep it until I get a mortgage (to avoid having no installment loans).

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The lack of an open installment loan isn't a big deal when it comes to the classic scores used for mortgages. When one's only open loan has closed, the typical result is either no point loss or a very small one. The bottom line is not to go out of your way to open a loan in order to prep for a mortgage, provided that your overall history is sufficient.

It sounds to me that your scores are plenty high for them to not be obstacles. Simply avoid the usual things that make lenders cranky, such as having too many new accounts.

[Anonymous]

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@HeavenOhio wrote:

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@Anonymous wrote:

I want to keep it until I get a mortgage (to avoid having no installment loans).

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The lack of an open installment loan isn't a big deal when it comes to the classic scores used for mortgages. When one's only open loan has closed, the typical result is either no point loss or a very small one. The bottom line is not to go out of your way to open a loan in order to prep for a mortgage, provided that your overall history is sufficient.

It sounds to me that your scores are plenty high for them to not be obstacles. Simply avoid the usual things that make lenders cranky, such as having too many new accounts.

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I got back to the 800's -- 807 on EX and EQ and 792 on TU just from getting cc utilization down. I did take a 5 year loan, which dinged me 2 points (EX was temp. 809) so there is no harm there, and I can pay it down to < 8.9% after one year and within 3-5 months of doing a mortgage app for max. score boost.

My TU scores seem to be allergic to 800 without a loan. Had same issue in 2015 after rebuilding. I was pretty much where I am now and the car loan got me to 850 once I hit the sweet spot. High revolver util killed my scores after the loan was closed, as evidenced by the recovery once utilization dropped to where it was in 2017.

I think I am positioned fairly well right now without a 5th (or more) revolver, but do want them to thicken my file & for rewards / lounge access. However, I don't want to tamper with scores where they are, so going to wait. EX Fico 8 is at 807 after all is said and done, and Fico 2 sits at 819. Will refresh everything after myFico gets all updates.

[HeavenOhio]

I think you're probably well positioned for a card or two right now. The question is whether a card or two right now would put you in a less advantageous position for a mortgage.

What you need to know are your three "mortgage" scores. I think you're going to find that there's a cushion that'll allow for a new account or two. And it's also possible that you'll have a cushion that'll  make it OK if you apply for a mortgage when your newest account is eight months old rather than a year. But we don't know what cushion you might have without seeing the three relevant scores.

Charge card utilization is only counted on one score that you care about. That's the Experian "mortgage" score. The card's highest balance is used to impersonate the card's limit. That means that at some point, or maybe at several points early in its lifetime, a new charge card is going to be maxed. If you grab a charge card, make sure it reports zero during the mortgage process.

Your other scores ignore charge card utilization. But charge cards still count toward total balances and number of accounts with balances.

[Anonymous]

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@HeavenOhio wrote:

I think you're probably well positioned for a card or two right now. The question is whether a card or two right now would put you in a less advantageous position for a mortgage.

What you need to know are your three "mortgage" scores. I think you're going to find that there's a cushion that'll allow for a new account or two. And it's also possible that you'll have a cushion that'll  make it OK if you apply for a mortgage when your newest account is eight months old rather than a year. But we don't know what cushion you might have without seeing the three relevant scores.

Charge card utilization is only counted on one score that you care about. That's the Experian "mortgage" score. The card's highest balance is used to impersonate the card's limit. That means that at some point, or maybe at several points early in its lifetime, a new charge card is going to be maxed. If you grab a charge card, make sure it reports zero during the mortgage process.

Your other scores ignore charge card utilization. But charge cards still count toward total balances and number of accounts with balances.

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EX mortgage score is 819.
AAoA dropped to 12 years, 3 months, but as I mentioned, over half of them are closed accounts (mostly loans) which will fall off eventually.

Waiting on the TU & EQ alerts that my new loan has been added, then I'll do a 3B refresh & see where those scores are.

So on AMEX, it's basically PIF before statement cut or scores take a hit?
What about 2 cards in 1 HP, can I try for Plat first then BCE?
I'm still trigger shy, but tempted just to see if I'm off their naughty list and if I'm still on it, no HP. If I get anything, I want the pull from EX. EQ has already been hit with the loan & TU is my lowest score.