@randomguy1 wrote:I need to pull my EQ\TU Mortgage scores to get a better picture, but the home in question is a new build so it will take 6 months to build the home. I'm unsure at what point in the time final loan and mortgage score will be used.
My EX FICO Score 2 is 723.
I have one installment loan that is around 68.7%. My revolving utilization is typically below 5% and I am using AZEO.
Would it be worth it to pay the installment loan down to 48.9%? It wouldn't be too much money based on my current balance but I wanted to make sure if it was significant enough to put the money towards the installment loan.
Thanks.
IMHO it is not important. The mortgage scores appear to be much less sensitive to installment utilization percentage.
I have observed slight movement in TU FICO 4, but with about 20% of the signal strength exhibited by FICO 8, and no movement in the other 2. Another user has reported seeing slight movement in EX FICO 2, and no movement in the other 2. But both were cases of a major change. Moving to below 50% is not a major change.
So my recommendation is that you concentrate on your revolving credit, especially the number of accounts with balances. The more zero balances the better, except that you want there to be at least one account reporting a small balance.
@randomguy1 wrote:I just ordered the MyFico Premier.
EX2: 723
EQ5: 705
TU4: 721
Since my revolving util is PIF every month and the AZEO card is under 5%, I was hoping that I could get into the next bracket by paying only installment loan (auto) I have on my file to 48.9%. It doesn't sound like that's possible, does it? Or is that more of a question for my mortgage lender?
I gave you the answer. It will NOT help your mortgage scores to do that. The mortgage scores basically don't care about your installment utilization.
PIF isn't necessarily the be all and end all on your revolving utilization. Are you PIF before the statement cuts or afterwards? That makes all the difference in your FICO revolving utilization.
If you actually are having all but one of your revolvers reporting zero balance, then you're optimized in terms of revolving utilization.
@randomguy1 wrote:
@SouthJamaica wrote:
@randomguy1 wrote:I just ordered the MyFico Premier.
EX2: 723
EQ5: 705
TU4: 721
Since my revolving util is PIF every month and the AZEO card is under 5%, I was hoping that I could get into the next bracket by paying only installment loan (auto) I have on my file to 48.9%. It doesn't sound like that's possible, does it? Or is that more of a question for my mortgage lender?
I gave you the answer. It will NOT help your mortgage scores to do that. The mortgage scores basically don't care about your installment utilization.
PIF isn't necessarily the be all and end all on your revolving utilization. Are you PIF before the statement cuts or afterwards? That makes all the difference in your FICO revolving utilization.
If you actually are having all but one of your revolvers reporting zero balance, then you're optimized in terms of revolving utilization.
Statement reports one revolver with a balance of less than 5%. The rest of the cards report at zero balance at statement date. The rest of the cards are paid down to zero well before the statement dates and not used until day after statement date. Since I only have 4 open revolvers and know all the statement dates on them, it isn't too terribly difficult (one of those cards is sock drawered and used once every 3 months).
OK so there's no room for improvement in that department.
If you have any negatives, work on getting rid of those.
If you can get the auto loan down to 9%, then do that, you'll probably pick up a few points somewhere in your mortgage scores.
Otherwise, 'aging' is the key. The mortgage scores love long periods of time with no new applications for credit and no new credit accounts.
@randomguy1 wrote:Thanks SouthJamaica.
I don't think there's much I can do other than aging at this point. I was hoping to get to the next (possibly top) tier.
Honestly if there's a line it's probably at 66%. Could be 50% (but it maybe could've been 70% too I was pretty coarse in my original test) which was what my original test years ago showed there to be a small gain in EX FICO 2 but we've never been able to prove that. Ultimately I wouldn't sink a lot of cash into it unless it's a high APR anyway to chase a few points even for a mortgage: it is ALWAYS good to have cash on hand for a mortgage. Always.
I was walking my auto and mortgage past breakpoints to try to nail it down but now I'm off opening up another mortgage which is going to break that calculation, again.
