Lost Score due to inactivity.

[Anonymous]

Hello everyone,  A couple weeks ago I signed a contract for my first home.   However when my loan officer with Prime Lending submitted the loan request it was denied because my Credit score went from 786 to N/A.  I was pre-approved back in June when for homes that would cost double what I ended up settling for.  So my income and former credit score should allow me to easily get the loan i need.

My morage officer had never seen someone go from good standings to loseing their credit score in just a couple months.  And after calling around my morgage officer determaned it is because I have had no open credit accounts or debts in almost a year. According to FICO's site to have a score you must of had an active account in good standings within the last 6 months. http://www.myfico.com/crediteducation/questions/requirement-for-fico-score.aspx

It was recomened to me that I get a credit card and get added as an approved user to someone elses account (someone with good standing credit).  Therefore I have since got 1 credit card and have been added as a approved user on two different credit accounts.  The plan is that once one of these accounts reports my data to the credit burros then my score will return.  Is this true?

My Questions.

- Is there anything else I can do to help ensure my credit is restored so I can close on my house?

- When I get a score again will it still use all my credit history in the calculation or will all my previous credit history be ignored?  This concerns me a lot, I understand that my credit score could be effected slightly because of all the accounts I'm being added to and the recent credit pulls but I'm really concerned that it will come back so low that they won't be able get the rate that I have locked in.

- I have recently been reading up on Rapid-Rescoreing.  Would doing one of these help ensure that a score is calculated?

Please help me understand what I can do and what to expect! and let me know if you need any further information.

-Bolt

[09Lexie]

Welcome to the forum. In order for accounts to be removed, that usually requires that the TLs have been closed without activity for a period of up to 10 years. What cc's did you have and how long had it been since they were used?

[Anonymous]

The last account I had open was a CarMax loan Opened 6/12, Last Active 11/12, last reported 12/12

I next card was a Citi card that was opened in 8/00, Last active in 9/10, last reported on 12/11

My first car loan with a credit union between 6/04 and 12/6

I also had student loans with US Depoartment of Education and Mohela closed 5/11 and 12/10

Overall I have 12-13 years of history over 8 accounts all in good standing.  The last time I actually used a credit card would of been in 9/10  (with the exception of the new card got a couple weeks ago).  I did however have a credit card with my current bank that I had never used, it was closed by the bank due to inactivity 10/12

PS. What is a TL?

[09Lexie]

Are they still reporting as closed? Inorder to generate a score you need to have the following;

At least one account that has been open for six months or more
At least one undisputed account that has been reported to the credit bureau with in the past six months
No indication of deceased on the credit report (Please note: if you share an account with another person this may affect you if the other account holder is reported deceased).

[09Lexie]

TL = trade line

[Anonymous]

Yes all those accounts were closed.

What accounts would be used when calculating a new score?

[09Lexie]

The AU accounts will be used. If there's no pyt history, no cl, no balances there's nothing to calculate a score...if that makes sense.

[Anonymous]

So the score I had before and the the accounts I had in the past are now meaningless?

[09Lexie]

It's that the score is meaningless...the fact that you have no negative history is a huge plus.
The reason I came here was for very similar reasons. I was 'running' out of TLs reporting and my lack of rev history made it difficult (when it wasn't before) to app for the cards I wanted.

You can jump start it again, as long as the history is there, adding the right TLs will out you back on track.

[AndySoCal]

I would consider getting another account (non AU) . Ask you loan officer