Mortgage Score impact - did i make a mistake paying off personal and car loans?

[Anonymous]

Hi,

My scores are below:

FICO 8 - EQ - 746. TU - 720, EX - 699

Mortgage - EQ - 722 TU - 663 EX - 677

I want to improve my mortgage scores so i started executing on AZEO strategy. I paid off my personal loans and car loan. Just worried if it will negatively impact my mortgage score. I also have open credit card balances, which i am planning to pay this month leaving one card with less than 9% balance. Should i have left one of personal loan unpaid?

Also i have following late pays. If i execute AZEO strategy, can i bring my mortgage score up or will these late pays continue to impact?

1) BOA - one 30 day Late pay in 2017

2) RBCFU - one 30 day late pay in 2018. two 30 day late pay in 2017

3) AMEX - one 30 day late pay in 2020. One 60 day late pay in 2017

4) Capital one - one 30 day late pay in 2020

[Anonymous]

In the sense that it will impact your score, yes. If you would have just paid them down to under 9% it would have boosted your scores a tad.

Those lates are doing the most damage and will continue to haunt your file for some time score wise, so having those Loans paid down as low as possible would have helped a little.  Maintaining AZEO will also help but at a snails pace, like with all wounds time will heal them.

[Anonymous]

Thank You Janus. Does having very old late payments disqualify me from conventional loan?

[pizzadude]

---

@Anonymous wrote:

Thank You Janus. Does having very old late payments disqualify me from conventional loan?

---

Late payments by themselves won't be a disqualifier but you should be prepared to discuss with your LO so that you can explain to underwriting if / when it comes up.   As pointed out above the impact to your scores will linger, but the good news is that it appears yours are no worse than 60 day lates which is certainly better than 90+ day lates.