Fico 4 much higher than Fico8. Help Please.

Anonymous · ‎03-15-2015

I am in the process of rebuilding credit to purchase my first home and just signed up for MyFico.

I reviewed my scores and my Fico4 was approximately 80-100 points higher on all three reports. 8 range: 571-602, 4 range: 671-682

Does this mean I have a better chance of qualifying for a mortgage? Will they use the 4 model?

Background: I lost my job and did not use credit for almost seven years. I have three collection accounts (all fall off by year's end), one state tax lien and bad student loans that I am working to get consolidated although I have paid the collection agency timely for the last thirteen months. If I successfully consolidate, will this wipe out my lates reported by the student loan group or is that a rehab?

I have recently signed up for a Cap1 Secured, Quicksilver (not reporting yet but according to simulator this will increase the Fico8 approximately 15 points) and new auto loan.

Thanks for any information you can provide.

Anonymous · ‎03-15-2015

Judging by mine, your student loans will still show. Mine changed lenders once and then were consolidated and all three phases of the loans still show with their payment history on my reports. I show a total of 27 student loan accounts, but only 2 are active loans. One set of mine still show a mess of late payments while the phase before them and the current loans show good payment history.

gdale6 · ‎03-15-2015

@Anonymous wrote:
I am in the process of rebuilding credit to purchase my first home and just signed up for MyFico.

I reviewed my scores and my Fico4 was approximately 80-100 points higher on all three reports. 8 range: 571-602, 4 range: 671-682

Does this mean I have a better chance of qualifying for a mortgage? Will they use the 4 model? The mortgage industry will use Fico 04 for the loan they have yet to upgrade to Fico 8.

Background: I lost my job and did not use credit for almost seven years. I have three collection accounts (all fall off by year's end), one state tax lien and bad student loans that I am working to get consolidated although I have paid the collection agency timely for the last thirteen months. If I successfully consolidate, will this wipe out my lates reported by the student loan group or is that a rehab? Not familiar with SL rehabs no info for you on them. For the CA I would try to get them off now with GW letters (the paid ones).

I have recently signed up for a Cap1 Secured, Quicksilver (not reporting yet but according to simulator this will increase the Fico8 approximately 15 points) and new auto loan. You want 3 bankcards and 1 store card at minimum, the bankcards can be un or secured. I would wait for your the QS to report before apping for your 3rd bankcard. You also only want one card showing a balance at the CRA of no more than 9% of its CL. For a mortgage pull rule of thumb is no new credit 6 months prior. Welcome to My Fico

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680

Thanks for any information you can provide.

Anonymous · ‎03-15-2015

I guess I'll have to deal with the consolidation and bad payments still showing then. I knew I was confusing the two. Thanks for the clarification!

Anonymous · ‎03-15-2015

I had no idea that I couldn't have new credit for six months prior. Good to know. I'll probably just start working with a broker so when the time comes, I'm prepared.

Once the QS starts reporting, generally what are the next line of unsecured cards "rebuilders" apply for? And what stores work with poor to fair credit?