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DW Mortgage reported, all score flavors dropped.

spiritcraft1
Valued Contributor

DW Mortgage reported, all score flavors dropped.

The DW solely has our new mortgage from NFCU (I am on the deed only) .  It just reported and her monthly pull from MF shows score drops from 20 to 40 points across the board.  I was expecting mortgage scores to take a hit but some like the 09 varieties really plummeted.  No big deal in the long run I imagine.  She is still in the 800's on a few score varieties.

 

She has a NFCU SSL loan expiring in a few months, should she get another one to replace it?  No other installment loan is in the near future.  Thanks.


| |

Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = High 300's - Low 400's
8-1-18 -
12-24-18 -
Current F08 -
Current 2,4,5 -
Current F09 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, Citi Tractor Supply Rev .8k, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG || PG Accounts: AMEX Biz Gold NPSL | AMEX Biz Plat NPSL | AMEX Blue Cash and Plus Cards
Message 1 of 9
8 REPLIES 8
Mr_Mojo_Risin
Valued Contributor

Re: DW Mortgage reported, all score flavors dropped.

I don't think DW will need another SSL. She has the mortgage reporting now, that should take care of the installment part.

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Message 2 of 9
spiritcraft1
Valued Contributor

Re: DW Mortgage reported, all score flavors dropped.


@Mr_Mojo_Risin wrote:

I don't think DW will need another SSL. She has the mortgage reporting now, that should take care of the installment part.


Thanks.  I didn't know if the Mortgage was the same Fico scoring wise.  I guess that would account for part of the score drop since the mortgage is not paid below 9% obviously.


| |

Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = High 300's - Low 400's
8-1-18 -
12-24-18 -
Current F08 -
Current 2,4,5 -
Current F09 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, Citi Tractor Supply Rev .8k, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG || PG Accounts: AMEX Biz Gold NPSL | AMEX Biz Plat NPSL | AMEX Blue Cash and Plus Cards
Message 3 of 9
aj2121
Contributor

Re: DW Mortgage reported, all score flavors dropped.

Agree with the above. An SSL will not do anything to contribute to the credit mix. The score drop was most likely cused by the change in installment utilization. If the SSL was already over 90% paid off, once the mortgage reported the score boost from low installment utilization disappeared. Additionally, the installment utilization increased significantly, probably close to 100% utilization (I'm assuming the SSL was for a relatively small amount), which will negatively impact scores. The good news, the scores will definitely rebound over time!

FICO8 as of 4/9/21:
Message 4 of 9
spiritcraft1
Valued Contributor

Re: DW Mortgage reported, all score flavors dropped.


@aj2121 wrote:

Agree with the above. An SSL will not do anything to contribute to the credit mix. The score drop was most likely cused by the change in installment utilization. If the SSL was already over 90% paid off, once the mortgage reported the score boost from low installment utilization disappeared. Additionally, the installment utilization increased significantly, probably close to 100% utilization (I'm assuming the SSL was for a relatively small amount), which will negatively impact scores. The good news, the scores will definitely rebound over time!


Thanks.  The SSL was originally 3.5k and is now under $100.  Conversely, the Mortgage is 97% currently.  Ahh well, we did what we needed to do @ 2% for a 15 year loan.   The SSL was part of my rebuilding for the DW, she got precident to clean up first and it worked out nicely in getting the above mortgage and some solid larger SL cards.


| |

Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = High 300's - Low 400's
8-1-18 -
12-24-18 -
Current F08 -
Current 2,4,5 -
Current F09 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, Citi Tractor Supply Rev .8k, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG || PG Accounts: AMEX Biz Gold NPSL | AMEX Biz Plat NPSL | AMEX Blue Cash and Plus Cards
Message 5 of 9
Revelate
Moderator Emeritus

Re: DW Mortgage reported, all score flavors dropped.


@spiritcraft1 wrote:

@aj2121 wrote:

Agree with the above. An SSL will not do anything to contribute to the credit mix. The score drop was most likely cused by the change in installment utilization. If the SSL was already over 90% paid off, once the mortgage reported the score boost from low installment utilization disappeared. Additionally, the installment utilization increased significantly, probably close to 100% utilization (I'm assuming the SSL was for a relatively small amount), which will negatively impact scores. The good news, the scores will definitely rebound over time!


Thanks.  The SSL was originally 3.5k and is now under $100.  Conversely, the Mortgage is 97% currently.  Ahh well, we did what we needed to do @ 2% for a 15 year loan.   The SSL was part of my rebuilding for the DW, she got precident to clean up first and it worked out nicely in getting the above mortgage and some solid larger SL cards.


Congrats to you / DW on the new house!  Yeah at some point once you get a mortgage sorted the various FICO tricks aren't quite as meaningful as mortgage is the most difficult thing to get UW by miles.  Thank you for the datapoint though, new account and installment ratio change would be right in that ballpark at her score levels.

 

Out of curiosity what were your closing costs on that 15 year 2% mortgage?




        
Message 6 of 9
spiritcraft1
Valued Contributor

Re: DW Mortgage reported, all score flavors dropped.


@Revelate wrote:

@spiritcraft1 wrote:

@aj2121 wrote:

Agree with the above. An SSL will not do anything to contribute to the credit mix. The score drop was most likely cused by the change in installment utilization. If the SSL was already over 90% paid off, once the mortgage reported the score boost from low installment utilization disappeared. Additionally, the installment utilization increased significantly, probably close to 100% utilization (I'm assuming the SSL was for a relatively small amount), which will negatively impact scores. The good news, the scores will definitely rebound over time!


Thanks.  The SSL was originally 3.5k and is now under $100.  Conversely, the Mortgage is 97% currently.  Ahh well, we did what we needed to do @ 2% for a 15 year loan.   The SSL was part of my rebuilding for the DW, she got precident to clean up first and it worked out nicely in getting the above mortgage and some solid larger SL cards.


Congrats to you / DW on the new house!  Yeah at some point once you get a mortgage sorted the various FICO tricks aren't quite as meaningful as mortgage is the most difficult thing to get UW by miles.  Thank you for the datapoint though, new account and installment ratio change would be right in that ballpark at her score levels.

 

Out of curiosity what were your closing costs on that 15 year 2% mortgage?


I think it was in the $2.7k range.  Since it was a townhome, there were a couple items that added cost. Her MMS was like 780 and we had 20% down of the $157K purchase price.   She did still have a $4.5k Collection on her EQ report at the time but they didn't even mention it.  It was in the DTI calculation however.  They entire process was pretty painless.  I handled all of it as with all of her CC's etc.  The deal was a purchase below market from my Sister.

 

Should we just pay off the SSL at this point?


| |

Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = High 300's - Low 400's
8-1-18 -
12-24-18 -
Current F08 -
Current 2,4,5 -
Current F09 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, Citi Tractor Supply Rev .8k, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG || PG Accounts: AMEX Biz Gold NPSL | AMEX Biz Plat NPSL | AMEX Blue Cash and Plus Cards
Message 7 of 9
aj2121
Contributor

Re: DW Mortgage reported, all score flavors dropped.


@spiritcraft1 wrote:

@Revelate wrote:

@spiritcraft1 wrote:

@aj2121 wrote:

Agree with the above. An SSL will not do anything to contribute to the credit mix. The score drop was most likely cused by the change in installment utilization. If the SSL was already over 90% paid off, once the mortgage reported the score boost from low installment utilization disappeared. Additionally, the installment utilization increased significantly, probably close to 100% utilization (I'm assuming the SSL was for a relatively small amount), which will negatively impact scores. The good news, the scores will definitely rebound over time!


Thanks.  The SSL was originally 3.5k and is now under $100.  Conversely, the Mortgage is 97% currently.  Ahh well, we did what we needed to do @ 2% for a 15 year loan.   The SSL was part of my rebuilding for the DW, she got precident to clean up first and it worked out nicely in getting the above mortgage and some solid larger SL cards.


Congrats to you / DW on the new house!  Yeah at some point once you get a mortgage sorted the various FICO tricks aren't quite as meaningful as mortgage is the most difficult thing to get UW by miles.  Thank you for the datapoint though, new account and installment ratio change would be right in that ballpark at her score levels.

 

Out of curiosity what were your closing costs on that 15 year 2% mortgage?


I think it was in the $3.5k range.  Since it was a townhome, there were a couple items that added cost. Her MMS was like 780 and we had 20% down of the $157K purchase price.   She did still have a $4.5k Collection on her EQ report at the time but they didn't even mention it.  It was in the DTI calculation however.  They entire process was pretty painless.  I handled all of it as with all of her CC's etc.  The deal was a purchase below market from my Sister.

 

Should we just pay off the SSL at this point?


I would pay off the SSL. It is not significantly impacting her aggregate loan balance to original balance and the mortgage satisfies the loan mix criteria. Paying that off you should see no change in scores, as always YMMV and there could be a slight change. 

FICO8 as of 4/9/21:
Message 8 of 9
spiritcraft1
Valued Contributor

Re: DW Mortgage reported, all score flavors dropped.


@aj2121 wrote:

@spiritcraft1 wrote:

@Revelate wrote:

@spiritcraft1 wrote:

@aj2121 wrote:

Agree with the above. An SSL will not do anything to contribute to the credit mix. The score drop was most likely cused by the change in installment utilization. If the SSL was already over 90% paid off, once the mortgage reported the score boost from low installment utilization disappeared. Additionally, the installment utilization increased significantly, probably close to 100% utilization (I'm assuming the SSL was for a relatively small amount), which will negatively impact scores. The good news, the scores will definitely rebound over time!


Thanks.  The SSL was originally 3.5k and is now under $100.  Conversely, the Mortgage is 97% currently.  Ahh well, we did what we needed to do @ 2% for a 15 year loan.   The SSL was part of my rebuilding for the DW, she got precident to clean up first and it worked out nicely in getting the above mortgage and some solid larger SL cards.


Congrats to you / DW on the new house!  Yeah at some point once you get a mortgage sorted the various FICO tricks aren't quite as meaningful as mortgage is the most difficult thing to get UW by miles.  Thank you for the datapoint though, new account and installment ratio change would be right in that ballpark at her score levels.

 

Out of curiosity what were your closing costs on that 15 year 2% mortgage?


I think it was in the $3.5k range.  Since it was a townhome, there were a couple items that added cost. Her MMS was like 780 and we had 20% down of the $157K purchase price.   She did still have a $4.5k Collection on her EQ report at the time but they didn't even mention it.  It was in the DTI calculation however.  They entire process was pretty painless.  I handled all of it as with all of her CC's etc.  The deal was a purchase below market from my Sister.

 

Should we just pay off the SSL at this point?


I would pay off the SSL. It is not significantly impacting her aggregate loan balance to original balance and the mortgage satisfies the loan mix criteria. Paying that off you should see no change in scores, as always YMMV and there could be a slight change. 


I just paid off the SSL.  Likely won't know anything FICO wise until June 1.  We will see what happens.


| |

Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = High 300's - Low 400's
8-1-18 -
12-24-18 -
Current F08 -
Current 2,4,5 -
Current F09 -

Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, Citi Tractor Supply Rev .8k, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k - All No PG || PG Accounts: AMEX Biz Gold NPSL | AMEX Biz Plat NPSL | AMEX Blue Cash and Plus Cards
Message 9 of 9
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