Made final payment on mortgage a couple weeks ago. No open installment loans of any type on file. Anticipaing a substantial score drop on Fico 8 and Fico 9 as a result. I was hoping to isolate the impact of no open loans but, put a 50% downpayment for replacing windows on a credit card.
The card reported a statement balance of $15,670 today on a $18,000 credit limit (87% utilization). Anticipate aggregate utilization will be 18% to 23% with 5 of 6 cards reporting balances.
I pulled a 3B report on 10/13 a week after making my final mortgage payment. Unfortunately, the mortgage still showed open with a balance of $1819 remaining. All 6 cards reported balances (snapshot below).
Of note, my EX Classic Fico 98 (score 2) dropped to 820 from 842 and the BCE score 2 version dropped to 845 from 867. @Anonymous I received the reason statement "you have too many credit accounts with balances" on EX BCE Fico score 2.
Fico 8 and Fico 9 scores still 850 across the board. How low will they go? My guess is 850 =>780
Plan to pull a 3B in early November after I am sure mortgage reports as closed. I'll then plan to pull another 3B when balances are paid and aggregate utilization drops below 3%. Hopefully that will provide me with the opportunity to then isolate impact of the no open installment loan impact from elevated utilization.
@Thomas_Thumb wrote:Made final payment on mortgage a couple weeks ago. No open installment loans of any type on file. Anticipaing a substantial score drop on Fico 8 and Fico 9 as a result. I was hoping to isolate the impact of no open loans but, put a 50% downpayment for replacing windows on a credit card.
The card reported a statement balance of $15,664 today on a $18,000 credit limit (87% utilization). Anticipate aggregate utilization will be 18% to 23% with 5 of 6 cards reporting balances.
I pulled a 3B report on 10/13 a week after making my final mortgage payment. Unfortunately, the mortgage still showed open with a balance of $1819 remaining. All 6 cards reported balances (snapshot below).
Of note, my EX Classic Fico 98 (score 2) dropped to 820 from 842 and the BCE score 2 version dropped to 845 from 867. @Anonymous I received the reason statement "you have too many credit accounts with balances" on EX BCE Fico score 2.
Fico 8 and Fico 9 scores still 850 across the board. How low will they go? My guess is 850 =>780
Plan to pull a 3B in early November after I am sure mortgage reports as closed. I'll then plan to pull another 3B when balances are paid and aggregate utilization drops below 3%. Hopefully that will provide me with the opportunity to then isolate impact of the no open installment loan impact from elevated utilization.
Pulled another 3B report today. Mortgage paid off 45 days ago but still not updated to show zero balance and closed status. However, I was able to isolate impact of increase in revolving utilization as I still had 6 of 6 cards reporting balances.
I had hoped to report a balance of $15,664 (87% utilization on my FIA card but, a $6000 payment ended up getting credited before balance was reported. So, card reported a $9664 balance (54% utilization) - up from $460 (3% utilization). Aggregate utilization increased from $2951 (3%) to $11,005 (13%) - excludes AU card.
Up until this test I have never reported over 9% aggregate utilization with all open accounts reporting balances. I previously had a lower limit card report a balance of $3202 (71% utilization) and 3% aggregate UT with no point loss. However, only 4 cards reported balances at that time.
At the elevated 13% revolving UT, I was able to drop all Classic Fico scores below 850. My lowest scores ever across the board. The jump in aggregate utilization to above 10% had a significant score impact! That said, I strongly suspect the aggregate balance in $ was a big factor as well. Pasted below are before/after Classic Fico scores (all cards reporting balances both cases):
The card has now been paid to zero and fewer cards will be reporting balances next cycle. Not sure why the the mortgage company has not updated the loan to report as paid and closed.
Side note: My Fico sensitivity index went from 48 to 57.
@Thomas_Thumb wrote:
The card has now been paid to zero and fewer cards will be reporting balances next cycle. Not sure why the the mortgage company has not updated the loan to report as paid and closed.
Side note: My Fico sensitivity index went from 48 to 57.
That EQ 5 score is interesting to me.
All 3 mortgage scores have 'Too many accounts with balances', but EQ 5 has an additional code for 'Number of bank or national revolving accounts with balances' (#23). (See mortgage scores reason differential here.)
Yet another data point showing the EQ FICO Resilience Index cares most about balances. Someone with an EQ 850 has a 39 on it right now, and of course balances are very low.