Focused on FICO Mortgage Models

[Anonymous]

I'm wondering if any of the more experienced members on the board can walk me through some of the finer points I'd want to focus on for my FICO Mortgage Scores.

My lender is using:

Equifax - FICO SCORE 5

Transunion - FICO SCORE 4

Experian - FICO SCORE 2

I have balances paid to zero on all revolving debt, have 1 paid collection, have a chargeoff set to expire next month.

I've learned that I should carry a small balance of less than 9% on 1 card. Any idea the best utlization ratio for mortage scores. Should the balance be my 1 primary revolving account or on one of the AU accounts?

Just wondering if there are any known tricks for bumping these scores. Midscore is 690, have to get to 700 for my mortgage product.

I have a bunch of AU accounts. AAoA is 5 Years (EQ), 5 Years (TU), 6 Years (EX). Can I afford to go any lower by opening another card (Only have 1 primary revolving tradeline)

Any tricks, tips, guidelines are appreciated.

[TRC_WA]

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@Anonymous wrote:

I'm wondering if any of the more experienced members on the board can walk me through some of the finer points I'd want to focus on for my FICO Mortgage Scores.

My lender is using:

Equifax - FICO SCORE 5

Transunion - FICO SCORE 4

Experian - FICO SCORE 2

Just wondering if there are any known tricks for bumping these scores. Midscore is 690, have to get to 700 for my mortgage product.

I have a bunch of AU accounts. AAoA is 5 Years (EQ), 5 Years (TU), 6 Years (EX). Can I afford to go any lower by opening another card (Only have 1 primary revolving tradeline)

Any tricks, tips, guidelines are appreciated.

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IMHO Blue is your problem.

Get your own cards... AU doesn't carry the weight it used to which to me makes perfect sense.  For the life of me I've never understood how piggybacking my grandmother's credit is any indication at all to potential lenders on how I will pay my bills...

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@Anonymous wrote:

Thanks... But I am at that stage where I am fine tuning for a mortgage, which I need to qualify for in October. Mortgage scheduled to close in December. I need a 700 and am around 690 on everything. Have a charge-off that hits 7 years in September, but I also need to be dialed in on every single tradeline.

So again my question, the small balance I intend to carry, should it be on my one primary line, which updates in 20+ days or can it be on an authorized user account which updates in 10 days? I'd prefer it to be sooner because I need formal pre-approval to remove a financing contingency on my home purchase.

I need to pick the most effective for my score, not the fastest however.

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That's another problem... but if it's that old you should be able to get it removed now.

Good luck getting those 10 points with just the single TL of your own... it's my understanding that mortgage lenders as well as the FICO scoring model put little stock in AU accounts.

http://ficoforums.myfico.com/t5/Mortgage-Loans/Lender-says-I-have-to-remove-authorized-user-accounts-true/td-p/1427022

"When a borrower has minimal trade lines to consider for credit worthiness and there are a lot of 'auth user' accounts present, then the underwriter can consider the credit score invalid."

[Anonymous]

Hey fellow Mariners Fan (I'm up in Snohomish County)

Thanks for the reply.

I assume the AU still works for mortgage models because they're older models. Even FICO 8 which intended to devalue AU accounts wasn't able to do so per my understanding. They did increase scanning for people that purchase AU tradelines though.

Regardless, the AU all come from my wife and the lender has already reviewed and told me there's no problem. I actually had a 703 on TU mortgage score without a single primary tradeline 2 months ago.

Any other info that anyone can share?

[Thomas_Thumb]

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@Anonymous wrote:

I'm wondering if any of the more experienced members on the board can walk me through some of the finer points I'd want to focus on for my FICO Mortgage Scores.

My lender is using:

Equifax - FICO SCORE 5

Transunion - FICO SCORE 4

Experian - FICO SCORE 2

I have balances paid to zero on all revolving debt, have 1 paid collection, have a chargeoff set to expire next month.

I've learned that I should carry a small balance of less than 9% on 1 card. Any idea the best utlization ratio for mortage scores. Should the balance be my 1 primary revolving account or on one of the AU accounts?

Just wondering if there are any known tricks for bumping these scores. Midscore is 690, have to get to 700 for my mortgage product.

I have a bunch of AU accounts. AAoA is 5 Years (EQ), 5 Years (TU), 6 Years (EX). Can I afford to go any lower by opening another card (Only have 1 primary revolving tradeline)

Any tricks, tips, guidelines are appreciated.

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You do not mention CLs for the AU cards or your own card. I would suggest you allow a low balance to report on YOUR primary card and one AU card. Not quite sure how you plan to inhibit balances from reporting on AU cards as those accounts are not under your direct control. 

In any event, given your situation, try to maintain aggregate UT under 20% for AU cards and your card combined. Scores in the high 700s can certainly be achieved with aggregate UT in the 10% to 20% range - so no real need to be under 10%. Nonetheless, to help keep aggregate UT% low, manage your primary card charges & payments so it posts a balance under 10% every month and then PIF.

You should get an additional credit card (or two) down the road if you want the mortgage now. The hard inquiry associated with applying for a new credit card may drop your score short term. Long term the card(s) will help you build credit.

[Anonymous]

There are no balances on any of the AU accounts. They are my wifes cards so I do have direct access to them and the balances. Financially, we are very healthy. Just trying to milk a few more points out of my credit score.

If I understand correctly, you recommend keeping a small balance on one of the AU accounts and a small balance on my primary as well?

[Thomas_Thumb]

Correct. She should have a small balance report on one of her cards where you are a designated AU (perhaps the one with the highest CL) and you should report a small balance on your personal (primary) card. It is helpful to show some activity.

Hopefully the AU cards have had some use over the past year and are not actually dormant. A dormant card that is re-activated may cause a temporary drop - not sure on this as I have not experienced it personally. Cards do need to be used periodically or there is risk of accounts being closed and then you lose the card's associated CL.

Just to clarify, I don't mean carrying a balance month to month on a card - just allow a balance to report and then PIF the amount that reports every month.

[Anonymous]

Thanks! You've been incredibly helpful

[Revelate]

I'd switch it up a little: have her report a small balance on one card you aren't an AU on (if she has one) and then you report a small balance on your own tradeline.  If you are an AU on all of her tradelines, then I'd probably do what TT suggests if I were so close in the process that I had an LO reviewing my file.

AU's shouldn't be a problem in the FICO 04/98 standard, but I'd keep it simple if you can: leave all the AU accounts $0.

[Anonymous]

Revelate has hit on the best advice, though it was all good.

As it turns out, our OP turns out not to need to worry about his wife getting the very maximum score she can.  Her scores are in the 800s.  (He's mentioned this on another thread.) The goal should be for the OP and his wife to so tweak their CC balances so that he has the absolute highest score that HE can achieve.

Thus any plan they come up with should involve his CC's being all zeroes except exactly one with a positive balance (and a 1-2% total U).  Two nonzero tradelines could conceivably cost him a few points which would not be good.  Revelate's suggestion will give each of them "all zeroes except one" -- but the key takeaway is that she doesn't need it.  It's crucial for him.