Experian FICO 2 (Mortgage) Score Question

[Anonymous]

Another thing is AZEO is revolving accounts only. I know I’ve gotten penalty for too many credit accounts with the balance, as opposed to or in addition to, too many credit cards with a balance.

I would have to check which algorithms that was, but I could’ve sworn it was on the mortgage scores. So if you consider revolving accounts only, what’s your numerator and denominator?

[Anonymous]

That is really interesting. If I'm reading your posts in the other threads correctly, I see the following:

1. When your youngest installment loan hit 12 months, you saw no benefit (1st thread)
2. Your EQ5 took a hit when the new installment loan was added to your file but your TU4 saw an increase. That's really interesting. 

Regardless, if this is true for my profile and score card, I could drop the AU. That would give me the following benefits:

• AZEO with a care of my own (non-AU)
• Improve AoYA to <12 months (assuming that the 2-month old installment doesn't factor in on morgage scores, no guarantees)
• Dip below 50% # of accounts reporting a balance by paying off my smallest and newest installment loan. It woudl require $4,000 but might be worth it. I could also get to below 50% # accts. w/bal. by going AZ, but that would work against me. 

If all of that worked out, I might be able to get my mid-mortgage from 699 the 720 band instead of aiming for 700. Hmmmm.....

[Anonymous]

It was part of the original opening 7 months ago. The card itself is only 7-months old. We got it for the 0% intro period.

FWIW, we added as AU to my wife's Bank of America Americard and it back dated things 15 years! I've only known her 5 years!

[Anonymous]

There are 8 revolvers total (4 AU and 4 non-AU). I only carry a balance on 1 AU card. I've been keeping a small balance on a non-AU card because I was going for AZEO (for some reason, I was thinking that AU didn't apply to mortgage scores but only applied to the newer scores - boneheaded on my part and completely backwards). As a result, I've been AZE2 for mortgage purposes thinking I was AZEO.

Per the a few posts earlier, I may drop myself from that AU that carries a balance to get AoYA <12 mos. I can get to AZEO with or without it (if AUs will get AZEO benefit for mortgage scores).

In short, I'm usually at 2/8 but thought I was at 1/4 due to my AU/Mortgage mix-up. I can be 1/8 or 1/7 easily.

[Anonymous]

No you misunderstand. My youngest revolver reached one year. I had no open installment account. (It had already been reported closed.) I waited for my AoYA awards on the first of the month. By design and with a lot of luck, my installment loan reported AFTER the first of the month. Yes I saw benefit, just not on Equifax and not on mortgage scores.

Coincidentally the new loan reported on the second and third. But as you can see I did not take a hit for it.

No you misunderstand, if you pay off that loan, that takes one off of your denominator. Accounts with a balance goes from open accounts. If you pay it off it’s a closed account.

I don’t know if you would see a benefit on the mortgage scores from AZEO with your own card. It’s a YMMV.

Keep in mind I did not see any AoYA awards for the mortgage scores, I do not know why. So I don’t know whether or not removing that seven months old AU card would work that way or not. Maybe. Like you said, there is evidence the installment loan does not reset it.

AZ would likely hurt you. It’s a shame you couldn’t get on a couple more zero balance AU cards. That’s going to help a lot that you got on the BOA card. That’s going to help your ages and number of accounts.

[Anonymous]

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@Anonymous wrote:
If you don’t mind, how about listing the negative reason codes for each of your three mortgage scores.

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EQ5 (699)

• You have a public record and/or collection on your credit report. ($87 collection on EQ only; 36-months old)
• You have a short credit history. (AAoA = 42 mos. AoYA:  Installment = 2 mos., Revolver (AU)= 7 mos., Non-AU = 12 mos.)
• You have a recent public record and/or collection on your credit report. ($87 collection on EQ only; 36-months old)
• You've made heavy use of your available revolving credit. ($9,206/$64,050 = 14.37% on 2 of 8 cards)

TU4 (693)

• You opened a new credit account relatively recently. (Installment - 2 mos.; AU - 7 mos.; Non-AU - 12 mos.)
• You have too many credit accounts with balances. (9 of 15)
• You have a short credit history. (AAoA = 42 mos. AoYA:  Installment = 2 mos., Revolver (AU)= 7 mos., Non-AU = 12 mos.)
• You have not established a long revolving and/or open ended account credit history. (Revolvers: AAoA = 48 & AoYA = 7mos.)

EX2 (724)

• You have a short credit history. (AAoA = 42 mos. AoYA:  Installment = 2 mos., Revolver (AU)= 7 mos., Non-AU = 12 mos.)
• You have one or more accounts showing missed payments or derogatory indicators. (2 consecutive 30-day lates; 42 & 43 mos. old)
• You've made heavy use of your available revolving credit. ($9,206/$64,050 = 14.37% on 2 of 8 cards)
• You have too many credit accounts with balances. (9 of 15)

[Anonymous]

One of seven or one of eight, either way will put you under 20% of revolvers reporting, so that will be optimal for mortgage scores.

You’ll probably still get the two many credit accounts with a balance because of the open installment accounts, how many of those do you have open? Can’t do much about that and really only aggregate installment utilization matters.

True enough you could pay an installment loan off but it would remove one from both the numerator and denominator because credit accounts with a balance goes from open accounts, just like too many revolvers with a balance counts only open revolvers.

[Anonymous]

What is your AooA? Is it the 15 year account you just got added to? If so what was it before that and has it reported yet?

I don’t understand why EQ is saying you have a recent collection when it is 36 months old. It’s like they’re dinging you twice.

Is the collection only on Equifax? Are the 2 30 day lates only on EX? Is TU clean?

All you have to do is bring your aggregate revolving utilization under 8.9% and you will get some points. And yes go down to one revolver with a balance, preferably yours.

Another thought, I have heard some profiles do not suffer awards/penalties for AoYA when they are dirty. 30 day lates do not put you in a dirty card, but a collection does. A dirty card can cap your top score as well.

[Anonymous]

I have the 15 yr au. It wasn’t just added. That happened about 2 years ago. I was just posting it to confirm. That BofA back dates. I have an installment that is also 12-15 yrs. either way, 15 yrs is AoOA.

$87 collection only on EQ.

30-day lates on all 3 bureaus (Dec. 2015 and Jan. 2016)

[Anonymous]

I wonder if my disputes are making the collection report each month. I wonder if they are using date of last time it was updated/reported instead of the DOFD.