I just want to SCREAM!

[Anonymous]

I'm just whining...I know a lot of people would love to be in my position but this pisses me off:

I paid off my mortgage last month!  Hurray!  No, wait a minute . . .  I just received an alert that my EQ score changed.

Lets see . . .  hum . . . score dropped from 817 to 762.  Lets check the detail.  Gee, my mortgage company updated my records to show "paid".

Because "Installment" credit is deemed better than "Revolving" credit, I now only have revolving credit left, thus my score was lowered.  Seems really messed up that when one pays off their home that you're penalized rather than rewarded.  What is wrong with this world?  I have no lates, ever, and I pay all my revolving accounts in full every month.  My debt ratio is less than 3% and the average age of my revolving accounts is 19 years with the newest being 12 years old.  You would think with all the foreclosures, that if one were to actually payoff a mortgage that your score should go up.  But NO!  Payoff your home and you get raked over the coals.

Message Edited by dwarfess on 01-12-2008 08:25 PM

[Anonymous]

55 points for mix- DANG

762 is one of my favroite numbers (it's not helping is it)

[Anonymous]

Thanks, I needed that...I'm at least laughing now!

[Anonymous]

Wow!!!

It might be something else. I wonder if the closed status is:

Paid, Closed, Never late. (I prefer this one)
or
Closed, Never late.
or
Closed N/A bal N/A.
or
$0 bal, N/A. Ect.

Wonder if they messed up when closing your account with coding? You could contact the Mortgage company and ask them "next month" not this month(there is a reason for waiting a month) to update your account again. Maybe something got lost in the update. That doesn't seem right at all. I have read that your score can drop after paying a long term installment because FICO likes a long term active payment. But maybe 5-10 points. Not as much as you had. Ask them to update it again reporting a $0 bal. Sometimes they leave the bal empty instead of typing in "0". I'm just guessing here. But worth a try. Please let us know if that helped next month.

Message Edited by ilovepizza on 01-13-2008 12:21 AM

[Anonymous]

That clearly doesn't seem right.  On my 11/24/2007 Equifax report, my FICO score was 804.  The average age of my accounts was 14 years, and my ratio of revolving balances to my credit limits was 7%. My newest account was 17 months old at that time.  I have no mortgage.  The last installment loan I had was an auto loan paid off in 1993.  I also had only revolving credit appearing on my Equifax report, but my score was higher than yours.  

Message Edited by psychic on 01-13-2008 02:33 AM

[Red1Blue]

I have paid off 2 installment loans couple of months ago. I did not have any score drop. Just to as insurance for future, though I did not needed money, last week I have added a car loan by taking a loan against the car that is already PIF. Strange fico world.

[Anonymous]

I'll run MYFICO reports in Feb once I know the other CB's have updated.  Payoff was in Dec but Last Activity shows as Oct.  Score Watch shows the following:

Score Change 01/09/2008:  Your score has changed from 817 to 762 . View alert details for more information about why your score changed.

Account Information  01/09/2008:  The following changes were reported for your ABCXYZ MORTGAGE COMPANY account:-
Balance Amount Changed from $13 to $0
Past Due Amount Changed from N/A to N/A 

Account Number:  XX000000XXXXX   Date Opened:  02/01/88   Last Activity:  10/01/07

Type:  N/A   Rate/Status:  Pays account as agreed   High Credit:  $93,900  Terms:  30Y  

Balance:  $0   Past Due:  N/A   Most Recent Date Reported:  01/01/08

Comments on Account:  Closed or Paid Account/Zero Balance , Real estate mortgage

Message Edited by dwarfess on 01-13-2008 11:50 AM

[Junejer]

I know that if you have a HELOC of about $50,000, the CRAs will report it as installment. You might not need it, but I would rather have a HELOC that I don't need than some monthly installment loan that you don't need. Just a thought.

[Anonymous]

That's an interesting idea, using a HELOC soley for the purpose of a score boost? .  Don't need it, but if it won't hurt then why not?  Then I'll have the money approvals already in place for when the BIG one hits here in Calif.

[Anonymous]

---

dwarfess wrote: Last Activity: 10/01/07

Type: N/A

---

Whoa! Why is TYPE N/A? Check the CRA's directly to see if it says Installment or Mortgage. Type is where many points are gained or lost. This could just be an alert thing and not mean anything. Just looking for reasons. Type = Coding. My friendly bank made my installment type consumer finance. How nice. You bet that got fixed!

Message Edited by ilovepizza on 01-13-2008 12:57 PM