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MMS Score Dropped and I don’t know why

1LastHome
Valued Member

MMS Score Dropped and I don’t know why

I have been steadily paying off credit cards (they're all closed except one small Cap1) and reducing utilization. I have read how mortgage scores like zero balances. On Feb 1, my MMS was 528 (Experian) and today it is 506 yet MyFico 8 (Experian) went up 3 points. Nothing else major has occurred. Please tell me this is just temporary. My next Fico update for all the scores is on Monday and at this point I don't see the point in updating for a disappointing score. I'm at a loss here...

3 REPLIES 3
LaHossBoss
Senior Contributor

Re: MMS Score Dropped and I don’t know why


@1LastHome wrote:

I have been steadily paying off credit cards (they're all closed except one small Cap1) and reducing utilization. I have read how mortgage scores like zero balances. On Feb 1, my MMS was 528 (Experian) and today it is 506 yet MyFico 8 (Experian) went up 3 points. Nothing else major has occurred. Please tell me this is just temporary. My next Fico update for all the scores is on Monday and at this point I don't see the point in updating for a disappointing score. I'm at a loss here...


Mortgage scores love $0 balances, but since you only have 1 open account, that means that if you have a balance report, 100% of your open revolvers have a balance.

 

Mortgage scores love a low percentage of accounts with balances.

 

Since the other accounts are closed, they do not really count towards this.

 

Having only 1 actuve account also poses the problem of if you report a $0 balance, becausr then the scoring alogrithms have nithing to score you on, so you get the negative reason code of "no revolving credit used" and lose points.

 

Ideally, you want 3 revolvers, but if you are looking to get a mortgage soon, mortgage scores do not like new accounts.

 

Do you have any other type of credit accounts that are open? Installment loans of some sort? Student, auto, personal loan(s)?

 

Or is the only account open you have is tge single credit card? If it only the single credit card that is open/active then you not only have 100% of revolving credit accounts reporting a balance, but 100% of all accounts reporting a balance.

 

 




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Message 2 of 4
1LastHome
Valued Member

Re: MMS Score Dropped and I don’t know why

I have 2 auto loans, 2 installment loans and student loan so otherwise a good mix aside from the one active credit card. As an update I just discovered a repo/charge off that I did a pay for delete was removed from my credit report.  I'm wondering if that was a factor; the auto score shower a slight improvement as well. 

Message 3 of 4
simplegirl
Valued Contributor

Re: MMS Score Dropped and I don’t know why

If your capital one reported a zero balance that score drop could be a result of that because you need the card to report a balance.








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