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To Add or Not to Add ?

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Established Member

To Add or Not to Add ?

Hey Fico Fam,

 

So goal at end of this year (4th quarter) is to try get mortgage loan but in the mean time im trying to think off how to boost my scores. In dec of 2017 me and the wife got a Shared secured loan at our local credit union for 1k but now a year later i made the last payment last month and my score dropped 22 points and hers 32 being that it was the only active installement account on our credit profile. Would it be a good idea to get another SSL to get the boost in points back? Not sure if it will hurt getting a new account as far as average age etc . i just dont want to hurt the chances late this year for mortgage loan. Also they will have to factor that payment into our dti and we dont have the greatest income. What u guys think? Would a active SSL help mortgage fico scores?

 

Second question .. i have a BOa credit card that should fall off 3rd quarter of this year reporting 6k balance . When this falls will i get a score increase in the mortgage scoring of things ?

 

Thanks in advance .

3/2019
Ex Fico 8 = 633
Eq Fico 8 = 626
T Fico 8 = 784
Mortgage Middle Score = 692
Message 1 of 4
3 REPLIES 3
Regular Contributor

Re: To Add or Not to Add ?

Your  score did go down, because you do not have any open installment loans.The real reason is that you didn't earn enough points in the types of credit category. If you open a new installment loan it will lower your aaoa. a new inquiry and you have opened a recent new account that will lower your score.It seems like alot in a short amount of time.I would refrain from doing that.The boa cc when it falls off  your cr the  balance will not be factored in the revolving utilization anymore, which is GREAT.The account will not be factored into aaoa and could negatively effect your score.If you have any open cc's use them to continue building along with the AZEO method before you go for the mortgage app.I't will probably be more rewarding in the long run.

Message 2 of 4
Established Member

Re: To Add or Not to Add ?

Thanks for the advice diycredit. i guess for now i will just hold out on adding any new accounts and just wait for the clock to run out on my boa acct. so for now garden it is . thanks again !

3/2019
Ex Fico 8 = 633
Eq Fico 8 = 626
T Fico 8 = 784
Mortgage Middle Score = 692
Message 3 of 4
Regular Contributor

Re: To Add or Not to Add ?

No problem.Glad to help.

Message 4 of 4