A 53 point drop!!! Help me!

[HeavenOhio]

I should have read your signature.

I believe that installment loans only help one of the three mortgage scores. Rather than opening a new loan and lowering your AoYA (age of youngest account) on all three reports, it might be better not to open one at this time. Someone else is going to have to chime in here.

[HopeMission]

iv-  Thank you-- Thats good news.  This effort to raise my score--- ($100. secured loan) has droped my (Score 8) over 50 points.

I am looking for a home and the only score MyFico shows me for "Mortgage Lending" is a 736 "Score 2"

I dont quite understand-- are you saying that lenders only look at "Equifax Score 5, Transunion Score 4, Experian Score 2"

[HeavenOhio]

For mortgages, they look at those three scores. Your middle score is what qualifies you.

[HopeMission]

I think i understand.  What you saying in other word is lenders look at:

Equifax Score 5

Transunion Score 4

Experian Score 2

When you say they take the "Middle score" you mean the average between all three scores?

Thx!!!!

[iv]

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@HopeMission wrote:

I am looking for a home and the only score MyFico shows me for "Mortgage Lending" is a 736 "Score 2"

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If you have one of the MyFICO 3B products, you should be able to "View additional FICO Score version used in mortage, auto and bankcard decisions".

Depending on which version of the interface is showing for you, you'll either see them side-by-side in smaller boxes under the big "FICO 8" display, or you'll see a list down the left-hand side with score versions for a specific CRA, but with a clickable bar on the top-left that lets you switch between Equifax | TransUnion | Experian.

You'll want to look at all three "mortgage" scores.

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@HopeMission wrote:

I dont quite understand-- are you saying that lenders only look at "Equifax Score 5, Transunion Score 4, Experian Score 2"

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Correct. (For all common types of mortgages.)

Specifically, they look at all three, and then use the MIDDLE score.

(IE: the highest and the lowest number are ignored, and the middle is used)

These specific scores are mandated by Fannie Mae and Freddie Mac, who effectively control the mortgage lending market in the US.

[HeavenOhio]

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@HopeMission wrote:
When you say they take the "Middle score" you mean the average between all three scores?

Thx!!!!

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The middle score would be the second highest (or second lowest) score.

[Thomas_Thumb]

As an Illustration:

EQ Fico score 5 = 630

TU Fico score 4 = 620

EX Fico score 98 = 730

Middle score = 630,

Mean (average) score = 660.

Mortgage lenders would use a score of 630.

[HopeMission]

Take away:

Kudos for the tough to hear answers here.  When it comes to credit bureaus--I have learned that there is no human element of listening to a story and making a fair adjustment (Unless its fraud). Its all an A.I. alogoriymthm. (sp).

Advice:  Learn from my mistake.  If you don’t have the perfect mix of credit products (no revolving credit) you can try getting a (SSL) secured loan…but buyer beware, it could ding your credit by 30 points at the moment its paid off.  Some have suggested getting a longer term.  I guess its just a roll of the dice and thankfully my bad experience is rare.

Side note-- I am happy and hopeful to be informed that the score mortgage lenders look at is 711 and not my Score 8  that has 

plummeted (675)

[HeavenOhio]

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@HopeMission wrote:

Side note-- I am happy and hopeful to be informed that the score mortgage lenders look at is 711 and not my Score 8  that has 

plummeted (675)

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I think understanding that is the biggest thing you've gained from this thread. And you've gotten some good news that really offsets your initial concern.

When it comes time to start working on your mortgage, pay your card balances to AZEO (all zero except one). That's when one card reports a small balance (maybe $20 or so, but at least $5) with the rest of your cards reporting balances of zero. The card with the positive balance should be a card where you're the primary user, a major revolver (not a store card or charge card), and a card with a limit of 34k or less. This will optimize the utilization portion of your score and give you every possible point available. If you can't do AZEO, come as close as you can.

In the meantime, don't get overly concerned about your FICO8 scores. Zero in on the mortgage scores, and FICO8 will come along for the ride.