Lack of real estate secured loan information

Anonymous · ‎11-13-2019

Ugh... this one! Problem is, I HAVE a mortgage loan! My mortgage company just won't report it because of my BK.

Anyone know just how much weight this actually pulls on my FICO? My Overstock just got a decrease in the line due to this reason as well as some actual real reasons, high balances, which are being paid down now that life is normal again after my car accident, and high inquires. I'm not overly concerned, I don't use it as much as I thought I would, but what funny is that one I use it and then pay it right off. Only Wayfair and my authorized user Care Credit carry a balance. My Cap 1 QS always has a high balance, but I pay it off a ton of times over the month since I use it a lot, but it tends to report at least $1k out of $1.5k since it reports right at the beginning of the month, right after I pay it off and then use it for my daily spending.

But the lack of real estate one is really bugging me. I was turned down for IKEA recently due to this, inquires, and my BK. The last two I get, but it's frustating seeing that real estate one, when I pay every month on time.

Anything I can do about this?

K-in-Boston · ‎11-13-2019

It is common for lenders to not report mortgage loans after BK unless there was a reaffirmation agreement. You are no longer responsible for the loan, but get to keep the house as long as you continue to make on-time payments. The only way around this would be to refinance your mortgage, but it is unlikely that you would qualify for the same or lower rate than you are paying now unless your rate is already fairly high.

It's important to understand that you are not being denied on these applications solely because you do not have a mortgage loan. You are supplied scores with each decision, and with the score the credit bureaus must report reasons why you do not have a perfect credit score. Not having a mortgage reporting can be one of those, but it's perfectly possible to have 800+ scores without an open mortgage loan reporting.

The number of points that is costing you is complete guesswork as everyone's profile is different. The points are likely much less than what you are being penalized on the utilization, number of recent inquiries (likely to a small degree), and the bankruptcy. What you are currently in control of is your utilization. No matter what your payment activity is during a month, the only things that will matter are your balances and credit lines at the time of statement closing (or other time of reporting for the rare lenders that report at other times, such as US Bank). You take penalties when each card hits certain percentages, penalties when your overall revolving balance hits certain percentages, and if 50% or more of revolving accounts show a balance above $0. If your CapOne card is reporting $1000 of a $1500 limit, that is 67% which is considered very high utilization.

Again, while the lack of mortgage account is going to show for denial reasons, it's not actually the reason you are denied, it's just one of several factors why your credit score is lower.

Anonymous · ‎11-14-2019

As K-in-Boston very completely explained, the exact reasons can only be surmized. "K" did a great write up and if you think on this and want more follow back, ask! This topic can be a challenge.

Anonymous · ‎11-15-2019

Thanks so much for this response. This had me worrid because on the IKEA app, I said I owned, so I thought maybe they were saying they were denying me because I didn't have a mortgage loan, even though I said I owned and had listed my payment amount.

I did figure it is my utilization that was the main thing and BK the second since I'm only a year past filing. The utilization is really tough right now because I have to be an auth user on my husbands card since the vet won't allow him to use it over the phone, and we had two major emergiencies with our cats that just shot that balance up. Luckily they both qualified for no interest if paid in 12 months, so we are focusing on that card right now. The Cap 1 is frustrating because the limit is so low, so even though I only spend what I can cover the next paycheck (I spend on average 800 to 1k a pay but I pay everything with it since it's a rewards card and I don't pay anything in interest). Of course my statement cuts on the 6th of the month, so I use it the 1st - 6th to pay bills and daily spending. If the dang thing would report on like the 1st, it would always show as zero balance! But I love those rewards. Hoping in the next few months they will bump that CL so that card doesn't look like it's always high utilization.

K-in-Boston · ‎11-16-2019

Have you asked for a CLI recently from CapOne on their website? Normally I'd say go for a card with a higher credit line and better rewards, but realize that can't always be the case. If you can qualify for Navy Federal Credit Union membership, that may certainly be worth considering as they are generous with less-than-stellar credit profiles and have cards that would earn the same or better rewards: https://www.navyfederal.org/loans-cards/credit-cards/

Aahz · ‎11-16-2019

@Anonymous wrote:
The Cap 1 is frustrating because the limit is so low, so even though I only spend what I can cover the next paycheck (I spend on average 800 to 1k a pay but I pay everything with it since it's a rewards card and I don't pay anything in interest). Of course my statement cuts on the 6th of the month, so I use it the 1st - 6th to pay bills and daily spending. If the dang thing would report on like the 1st, it would always show as zero balance! But I love those rewards. Hoping in the next few months they will bump that CL so that card doesn't look like it's always high utilization.

Capital One allows you to change your payment due date online (under the "I Want To..." menu). Changing your due date will also change your statement close (reporting) date. My due date is currently the 27th which means my statement closes on the 2nd. This may be ideal for you.