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Experian FICO 2 (Mortgage) Score Question

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Valued Member

Re: Experian FICO 2 (Mortgage) Score Question

Another interesting note is that my Citi card reported 5 days ago with a balance of $1. The statement balance is $1.17 and I don't know how I missed that. Have I mentioned how sensless the FICO algorithms are (especially the mortgage scores)? That $1 balance is going to be another tradeline with balance and it won't update for nearly a month because I paid it today. I wish it updated $0 balances immediately like Chase. For what it's worth, it is still showing as $0 on EQ because it updates Citi about a week later. It should update today, but I won't have access to another mortgage score until next month. So ridiculous.

 

With that $1 Citi balance, that puts me at 10 accounts with a balance out of 15 total. This includes all revolvers (AU and non-AU) and all open installment accounts, but no paid-off installment loans. It also doesn't include the $87 collection that is only on EQ. For EQ, it may be 11 of 16. When that $1 reports as paid off, that will get me to 9 of 15. I don't see a way to get below 50% without messing up my AZEO. I'm carrying a $9,000 balance on a 0% AU card. I keep a small balance (currently $195) on a non-AU card for AZEO purposes. If I pay off that $195, the only revolver I will have is on the AU card and it is believed that the AZEO with the 1 card being an AU card doesn't work. Given how antiquated the mortgage scores are, will this hold true on TU4?

 

I could get below 50% # of accounts with a balance (8 of 15) but my AZEO would become only an AU card with a balance. If I'm really stuck, it might be worth the experiment if I can't get above 699 mid-mortgage anyway.

 

If I pay off my smallest installment account, I lose an account with a balance  in the numerator but I also lose a total account in the denominator. That would only get me to 8 of 14 and it would take $4,000 to pay it off. 

 

I could open another revolver and keep it at $0 but that would hurt my age and be another HP. I might need to see if my wife has another $0 balance card that can become an AU for me. I don't think she has any other cards other than a store card, which may do more damage than good (although going from 1 to 2 consumer finance accounts is probably less hurtful than going from 0 to 1).

 

 

 

 

Message 51 of 80
Valued Member

Re: Experian FICO 2 (Mortgage) Score Question

Ah, but I just realized that I'm not getting the benefit of AZEO anyway because the AU card has a balance. Keeping the $195 balance on the Capital One (non-AU) for purposes of AZEO is dumb because an AU card isn't $0 (at least for mortgage score purposes anyway; doesn't apply to FICO 9). I can easily take all of my non-AU cards to $0. I would only have a balance on an AU card but still wouldn't bet below 50% # of accounts with a balance (8 of 15).

 

If AZEO doesn't work on AU cards, maybe I should just remove myself as an AU on the 0% AMEX that carries a balance. That would get me whatever benefit comes from AZEO (non-AU). Might do the trick.

Message 52 of 80
Valued Member

Re: Experian FICO 2 (Mortgage) Score Question

Birdman-

 

I see that your post from a different thread (pasted below) shows that AZEO w/AU as the 1 works for EX2. If so, it's not a stretch to think that it might hold up for TU4 and EQ5. I think I'll give it a go unless someone already knows that it doesn't work.

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/EX2-mortgage-score-change/m-p/5559685

Message 53 of 80
Valued Contributor

Re: Experian FICO 2 (Mortgage) Score Question

First and foremost, the Citibank account specialist team can do off cycle updates, you just got to talk to the right person. Or the executive office. You can get it done. I have.

The reason it is said not to use the AU account is because it’s a unknown. Unless you test it, you don’t know whether it counts on versions eight and nine. It always counts on the mortgage scores. However, due to the potential unpredictability without testing specific cards, the conventional wisdom is to use a national bank card that is not an AU card and it is under $25,000 in credit limit. You could open another card without an HP, but if that would cross an AAOA age threshold, it would hurt you. That’s assuming your AoYA is already under a year, which I believe it is right?

Yes if you could be added to a couple AU accounts that could help, if they have zero balances, if it could be done quickly.

The reason AZEO works is because it gets you under the minimum threshold for number of accounts with the balance and under 8.9% aggregate utilization.

It’s a quick rule of thumb. Some people can have two or three accounts with a balance and still realize the same benefit, but without testing, it is the easiest rule of thumb.

If they’re AUs, don’t worry about the CFA, because you can always be removed later.

If you can zero out all the non-AU cards, is the AU card a national bank card that has a balance? If so, you could try leaving only that one AU with a balance and see what happens because they count on the mortgage scores and as I said sometimes they count on eight and nine depending, you just can’t rely on it without testing.

Yes again AU accounts count full Monty for the mortgage scores, We recommend non-AU cardsbecause most people are also worried about version eight and nine and in a hurry.







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 54 of 80
Valued Contributor

Re: Experian FICO 2 (Mortgage) Score Question

Yes the AU card will work for the mortgage scores, but mine was a retail card and I think that’s why also got the negative reason code for no revolving balance.







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 55 of 80
Valued Member

Re: Experian FICO 2 (Mortgage) Score Question

Yes, the AU card with a balance is a national card. It is an AMEX. Not a branded card (i.e. Marriott, etc.). Just a conventional AMEX.

 

AAoA is 42 months included closed/paid-off installment accounts. If I removed the closed/paid-off installment accounts from the equation, AAoA is 39 months. I have the 2 month old auto loan (from having to buy a new car after my car being totaled and paid-off by the other driver's insurance) and a 7 month-old AU card. Everything else is more than 12 months old.

Message 56 of 80
Valued Contributor

Re: Experian FICO 2 (Mortgage) Score Question

I think I got a partial penalty somewhere but I’m pretty sure that was because it was a retail card.

You do not want to remove paid installment accounts. That would offer you no advantage, it would lower your AAOA.

Check this out, I just recently did some testing that suggests an installment account does not reset AoYA. I’m waiting on new revolvers to hit to confirm that. If in fact that’s true, that seven month old AU account could be causing you an AoYA penalty. If that were true, removing it could give you points. If not, it hurts you, because it lowers the denominator on number of accounts with the balance.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/12-mo-AoYA-awards-clean-aged-thick/m-p/5...

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/New-loan-awards-quot-clean-aged-thick-no...







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 57 of 80
Valued Contributor

Re: Experian FICO 2 (Mortgage) Score Question

What does your credit report reflect the date of opening is for the AU account?

Was it just open seven months ago? Or is that just when you were added to it? Depending on the card, some backdate.







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 58 of 80
Valued Contributor

Re: Experian FICO 2 (Mortgage) Score Question

The problem is I didn’t see any AoYA awards on the mortgage scores at 12 months. I don’t know why and I don’t know if they give them at a later time?







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 59 of 80
Valued Contributor

Re: Experian FICO 2 (Mortgage) Score Question

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







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 60 of 80
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