I look dirty/mature, D3. I'mma bust a hoard of new cards before my BK falls off after next November. Booya?
@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.
