@Anonymous wrote:Thanks for clarifying that. But isn't the system broken if it does this sort of thing? Shouldn't it be smarter and see what's going on, instead of penalizing who's doing something to save thousands? How's that an indication of bad credit, or that that person should have a drop in the score?
I'm not here to defend the FICO algorithms, or the "system", but no, your particular experience does not in the least support the view that the system is broken. Your experience shows that a person who trades in a partly paid off mortgage for a 100% unpaid mortgage is going to experience a dip in scores. And I doubt the dip will be as great as the one you are reporting to us. I have a hunch that when the dust settles on the 2 transactions your point loss will not be as severe as it is today.
@Anonymous another important point to remember is that this is all bs... like on a colossal level. Yes lenders do want to know that you will honor your obligations to them (so credit scores should be above a certain level), however they DEFINITELY want to squeeze every bit of interest out of you. (So a "high score" but not too high) There's always someone here in the 800's yapping about being turned down for this or getting a low limit on that. Point being the game is not rigged for your benefit, it's rigged for theirs.
Ponder the recent rise in Mortgage rates after a relatively small increase in interest rates by the Fed... there are literal bucketloads of cash being made by the banks right now. Anyone who was loving those stimulus checks are hearing the sound of the other shoe dropping. 🤣
I bet banks LOVE to see us right between 620 and about 679. They clean up in that range and the customer is just happy to be approved. I try not to lose myself in this. Other than a Mortgage or car note, I only apply for credit when I do NOT need it. Amazes me how that works so well.
As others have said, they likely are only reporting as one. On the chance they all DID report individually, you might be able to reach out to the bureau to discuss. If the broker was shopping around with a bunch of different lenders, they might have wound up with many different pulls. However, unless you have a really thin file you should recover from this quickly.
I purchased a new car last year, and when I checked my report I saw 6 inquiries from the dealership but they only socred as one. My score dropped 10 points total (between the inq and the new loan bumping up my installment utilization) but I recvoered in 3 months.
