Mortgage score

[Anonymous]

Recently paid off about 8 credit cards down to a zero balance. Still have 3 below 20% usage 3 above 50% usage. I also paid off 2 consumer loans with 1 remaining (at about 200.00 and will be paid off in abou a week.). I have not seen a major increase in my score( 4 points up) is this normal? Trying to qualify for a decent mortgage rate. Mortgage score is at a 620

[JVille]

Well those are good things but what about other Derogatory items, past slow pays & collections etc. Do you have any other derogs, how many and when was the last?
If you only just paid them off you it can take a couple months for everything to get reported and scores to start changing. So time will tell and what your history looks like.
So is the 620 your Fico ? Middle Score? You understand that there are 3 Mortgage Scores and the lowest score of both borrowers is used. Where did you get that score? Just making sure we are all talking about the same things.

Congratulations on starting on the path to home 🏠 ownership!

[Anonymous]

@Jville It's my middle score with my highest being 645 and lowest 617. I do have a chapter 13 on my report from 2014 (initial drop in score about 110 points). Score is from MYFICO 3B report. Recieved several notifications over the past few days of account balances being updated on various reports threw MYFICO

[homeloanexpert]

Paying c/c accounts to $0 will generally lower your scores. It's always better to strategically charge and pay down to try and keep a small balance of (approx 7-9% utilization) unless your DTI is a concern. With a 620, you should be good to go now.

Best wishes to you!

[AllZero]

Remember these thresholds: 8.9%, 28.9%, 48.9%, 68.9%, 88.9%

If you're not crossing a threshold, you won't be getting points.

Mortgage scores don't like more than one revolving credit card with a balance.

Get your CC aggregate utility at or below 8.9%. Look into the AZEO All Zero Except One technique for full FICO points optimization.

How many open installment loans do you current have? What is the utilization %?

Open installment loan similar to revolving CC react the same. You want to keep one open installment loan with utilization at 8.9% or less. Once you close all your installment loans, you'll lose those bonus points.

You might want to address any derogatory you have; delinquency, charge off, collection, etc. If they are updating monthly, it'll keep your scores suppressed.

[Anonymous]

@ALLZERO
How many open installment loans do you current have? What is the utilization %?
I have 2 installment loans reporting. 1 Just recently paid off(waiting on an update) the other is at about a 30%-35% utilization rate.

[AllZero]

Depending on how long you choose to keep your one installment loan open and when you apply for mortgage will be something to consider.

You should see score improvement when loan crosses 28.9% and again at 8.9% utilization.

[Anonymous]

Thabk you for the valuable information. I dont have much of a choice with a set payment plan. It will be paid off within the next 3 months. We are building so no installment loans will be active once we close.