Mortgage Scores

[Anonymous]

I'm sure this has been asked, but I am new to the board. Do the mortgage scores adjust in synch with the FICO 8 scores?I plan on paying down some major cc debt in next couple weeks with hopes of raising scores to qualify for a mortgage. My mortgage scores are in the mid 500s one is 610.

[AllZero]

@Anonymous   In general, yes. EX2, TU4, EQ5 react positively when you cross scoring thresholds; reduce your utilization and number of cards reporting a balance.

Seek AZEO All Zero Except One card reporting a small balance.

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20

[Anonymous]

Thank you for your response. Trying to get scores high enough to qualify for a mortgage. Lowering balances and utilization will be first plan of attack.  I have one thirty day date with NFCU, I was thinking of calling and asking for a good will removal. Any experience with NFCU? Thoughts on them being agreeable to that?
Thank you!

[AllZero]

What date is the delinquency?

Depending on your profile, the recency of a 30 day late can have a major impact up to 2 years. Afterwards, you may see score improvements as it continues to age. It may still have an impact for the whole 7 years while on your credit report.

Writing a Good Will letter is worth a shot. I don't have any experience with NFCU in that regards. I do not know how successful you will be.

[Anonymous]

Unfortunately the thirty day late is very recent, it was a total oversight on my part and couldn't have happened at a worse time. I have two older charge offs that are about three years old. I paid them off in a settlement offer so it reports that way.  I tried disputing but it was just verified, I'm hoping the fact that they are older accounts they are having less of an impact on my score. 

My current home just went under agreement and I will clear a sizable amount so I will have the money to pay down everything. I'm hoping that will be enough to get my scores where they need to be to qualify for a new mortgage. At this stage of the process I'm not sure what else I can do. I have a short term rental lined up for the interim.

Any thoughts or suggestions would be greatly appreciated!

[AllZero]

@Anonymous  When the time comes, share your success with the community. Data points are always appreciated.

[Anonymous]

An aged CO carries around the same weight as a recent minor (30D) so removal of either probably wouldn't result in much of a change to your scores due to the other still being present.

[Anonymous]

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@Anonymous wrote:

An aged CO carries around the same weight as a recent minor (30D) so removal of either probably wouldn't result in much of a change to your scores due to the other still being present.

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@Anonymous how many points were you estimating the other day for a major and a minor aging off? And you were describing how roughly 1/3 or 2/3 of the points come back by 2 years and the rest at 7?

it appears he's on a mature delinquency Scorecard. I don't know how much an extra 30 day late would ding the dirty card, but that recency makes it hurt worse. If OP can get rid of that recent 30 day by Goodwill, I think he'll see an increase. 

Chargeoff had aged past 24 months so much of the sting is gone. But that recent 30 day late I believe stung some more. OP, how many points did you lose when that 30 day late reported? And do you know how many points you've gotten back at six-month intervals?

[Anonymous]

Will do, I have received so much help and guidance from this board. It's very much appreciated!!

[Anonymous]

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@Anonymous how many points were you estimating the other day for a major and a minor aging off? And you were describing how roughly 1/3 or 2/3 of the points come back by 2 years and the rest at 7?

it appears he's on a mature delinquency Scorecard. I don't know how much an extra 30 day late would ding the dirty card, but that recency makes it hurt worse. If OP can get rid of that recent 30 day by Goodwill, I think he'll see an increase. 

Chargeoff had aged past 24 months so much of the sting is gone. But that recent 30 day late I believe stung some more. OP, how many points did you lose when that 30 day late reported? And do you know how many points you've gotten back at six-month intervals?

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He could see an increase, maybe 10-20 points or so.  I figure recent minor is probably worth around 80, where an aged major probably lands around 60-70 for many.  Take the difference (10-20 points) and I think that's a reasonable gain expectation for the removal of the recent minor.  It's also worth noting that the OP referenced multiple majors, so the removal of just 1 shouldn't in most cases result in a score gain if there of relatively similar age.