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@Anonymous wrote:
Hey Community, I did a little updating and rearranging. Recommend you re-read Credit Mix at post 5. Also added a slide to post 1 regarding scorecards. A few other minor changes and a little rearranging to make room. Enjoy! And as always thanks to @Anonymous for all the assistance!
@Anonymous: A lot of people think a mortgage is necessary to get an 850, or that not having one hurts their score.
We know from the AMA that both statements are false, so I think that should be under Credit Mix somewhere.
Tom Quinn (FICO, VP of Scores): "There is no characteristic in FICO Scores that penalize a user for not having a mortgage loan." ( Link )
...and...
Tom Quinn: "There is no requirement to have an open mortgage to get an 850 score." ( Link )
Coming along very nicely!
@Anonymous wrote:
@Anonymous wrote:
Hey Community, I did a little updating and rearranging. Recommend you re-read Credit Mix at post 5. Also added a slide to post 1 regarding scorecards. A few other minor changes and a little rearranging to make room. Enjoy! And as always thanks to @Anonymous for all the assistance!@Anonymous: A lot of people think a mortgage is necessary to get an 850, or that not having one hurts their score.
We know from the AMA that both statements are false, so I think that should be under Credit Mix somewhere.
Tom Quinn (FICO, VP of Scores): "There is no characteristic in FICO Scores that penalize a user for not having a mortgage loan." ( Link )
...and...
Tom Quinn: "There is no requirement to have an open mortgage to get an 850 score." ( Link )
Coming along very nicely!
@Anonymous Done! 😊 And thank you, wouldn't be possible without you! And a big thank you to all who contribute! You make it possible Community! And thanks to MyFICOforums for having us!
Community, CassieCard has been nice enough to create 8 and 5/4/2 HTML negative reason code charts for you at the following thread:
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Score-Factors/m-p/6170415/highlight/true...
I look dirty/mature, D3. I'mma bust a hoard of new cards before my BK falls off after next November. Booya?
@LP007 wrote:I look dirty/mature, D3. I'mma bust a hoard of new cards before my BK falls off after next November. Booya?
hahaha
Many, many thanks to @Anonymous and @Anonymous for the design, development, publishing and improvements to these posts in this thread.
@Anonymous wrote:
@Anonymous: A lot of people think a mortgage is necessary to get an 850, or that not having one hurts their score.
We know from the AMA that both statements are false, so I think that should be under Credit Mix somewhere.
Tom Quinn (FICO, VP of Scores): "There is no characteristic in FICO Scores that penalize a user for not having a mortgage loan." ( Link )
...and...
Tom Quinn: "There is no requirement to have an open mortgage to get an 850 score." ( Link )
Coming along very nicely!
Thank you so much, @Anonymous, for your hard, thoughtful and meticulous work in curating and analyzing so much helpful info! You are a treasure.
Reading through your Score Factors thread made me think back to the post quoted here. I'm curious whether and how you think we can reconcile Tom Quinn's bolded statement with the existence of score factor 79 on the EX8 and TU8 tables? Just to save people a few clicks, the text for score factor 79 is "Lack of recent reported mortgage loan information."
@Curious_George2 wrote:
@Anonymous wrote:@Anonymous: A lot of people think a mortgage is necessary to get an 850, or that not having one hurts their score.
We know from the AMA that both statements are false, so I think that should be under Credit Mix somewhere.
Tom Quinn (FICO, VP of Scores): "There is no characteristic in FICO Scores that penalize a user for not having a mortgage loan." ( Link )
...and...
Tom Quinn: "There is no requirement to have an open mortgage to get an 850 score." ( Link )
Coming along very nicely!
Thank you so much, @Anonymous, for your hard, thoughtful and meticulous work in curating and analyzing so much helpful info! You are a treasure.
Reading through your Score Factors thread made me think back to the post quoted here. I'm curious whether and how you think we can reconcile Tom Quinn's bolded statement with the existence of score factor 79 on the EX8 and TU8 tables? Just to save people a few clicks, the text for score factor 79 is "Lack of recent reported mortgage loan information."
From my own experience, I was able to maintain an 850 score after I paid off my mortgage. So in that respect, it wasn't necessary to have an open mortgage tradeline to achieve an 850 score. However, I noticed that any new inquiry or account created bigger swings in my score than when I had an open mortgage tradeline. For example, an inquiry with an open mortgage cost me zero points and a new account cost 4 points. After paying off my mortgage, an inquiry cost 1 point and a new account cost 9 points. Both of these examples started with an 850 EX score and dropped from there. Of course there could have been other factors at work in the algorithm, but none were obvious to me.
@Curious_George2 That’s not a difficult question. You can reach 850 and still have an imperfect file. Negative reason codes signal that something can be improved. Contrary to popular belief, 850 does not mean the file is perfect!
Therefore a mortgage is not necessary for a perfect score. However even with the 850, a perfect score, there is still room for improvement, although it would not be reflected in the score. Remember, there is a buffer.
@Curious_George2 and another thing to keep in mind is, you're not being penalized for the lack of the installment loan; it's simply signaling that you could be awarded bonus points if you had the loan and at proper utilization levels.