Mortgage on CR

[Anonymous]

I just ran a 3 in 1 from EQ. I have a paid loan that is now being shown as a mortgage account, it was a personal loan. How can they change like that. Did not seem to help my very bad score.

[Anonymous]

As long as it is showing paid & no baddies I would leave it. Trying to change it might get the complete TL deleted.

[Anonymous]

Sounds good. My score did go up 16 points.

[Anonymous]

Mortgages help your credit score.

Why?

No one outside of Fair Isaac's scoring department really knows why, but my suspicion is that FICO reasons a mortgage means someone else thoroughly evaluated your finances and found them to be sound...so why not "piggyback" on someone else's work?

[llecs]

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TheNewWorldMan wrote:
Mortgages help your credit score.

Why?

No one outside of Fair Isaac's scoring department really knows why, but my suspicion is that FICO reasons a mortgage means someone else thoroughly evaluated your finances and found them to be sound...so why not "piggyback" on someone else's work?

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Also 10% of your credit score is comprised of types of credit used. Having a revolving CC, a charge CC, a mortgage, and an installment loan all play into that.

[haulingthescoreup]

Plus, mortgages imply stability, whether fairly or not.

(All you people who have to/ choose to rent, please don't flame me. I'm just commenting on how some assumptions get made in assigning risk.)

[Anonymous]

As I looked back at some of my old CR, I found that it had always been listed as a home improvement loan. This is funny since it is a personal loan specifically for military members. I have two of them that are listed that way. And they were not large loans. When I saw that I was kinda shocked it was reporting that way. They are both paid, never late. In the long run I guess they help either way you look at it. A mortgage was the only thing I did not have.