@Anonymous wrote:Hello,
Can anyone help explain why my Fico 8 score can be good, but then my "Mortgage" score is so much lower. I have even seen my Fico 8 go up but then my Fico 5 Mortgage score go down. So confusing. I am working so hard to raise lending score to get better interest rate.
TIA for all answers.
My FICO 5 is always much lower than my FICO 8. For example, in my last report it was 47 points lower.
One way to see what's hurting is to compare the negative reason codes in each. If the FICO 5 is complaining about certain things which FICO 8 is not complaining about, that gives you a clue as to its priorities.
From what I've been able to scratch together, here are some things which I think are true:
-installment utilization not important in 5
-accounts open not important in 5, closed accounts count for credit mix
-youngest account aging to 6 mos is a major event in 5
-5 is more sensitive to # cards reporting balance
-5 is more sensitive to revolving account utilization
-5 is more sensitive to recent new accounts
-5 is more sensitive to recent inquiries
-5 is more sensitive to the number of cards reporting a balance (as opposed to reporting a zero balance)
So I guess the best way to bring your FICO 5 up is to:
(a) Not apply for anything that might trigger a hard pull
(b) Not open anything new
(c) Try to get all but one of your revolving accounts down to zero
