Mortgage Score Impact - Less Than Expected

[Anonymous]

I didn't calculate the $0/$15,700 AU card. If that is calculated in the aggregate utilization then it went from 48.1% to 39.6%. That could explain the lack of score increase as it would not have crossed a new threshold.

[Revelate]

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@Anonymous wrote:

I didn't calculate the $0/$15,700 AU card. If that is calculated in the aggregate utilization then it went from 48.1% to 39.6%. That could explain the lack of score increase as it would not have crossed a new threshold.

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The AU anti-abuse algorithms didn't come into play until FICO 8; prior to that they count without restriction.

[Anonymous]

Yes they count all the way across the board on the mortgage scores. And being in a dirty card, you may have a maximum score. Your best chances are AZEO with a small balance.

[Anonymous]

Here's my update showing score movement as balances were paid down:

Shooting for mid-score 700:

1/16/20 Report - Mortgage Scores

EQ: 659

TU: 686

EX: 650

Revolving Accounts

Discover: $3,507/$4,600 (76.2%)

Chase : $16,410/$20,800 (78.9%)

Cap One : $0/$300 (0.0%)

US Bank (AU): $0/$15,700

Total : $19,917/$41,400 (48.1%)

2/17/20 Report - Mortgage Scores

EQ: 659 (No change)* Discover did not update on EQ yet

TU: 688 (+2)

EX: 664 (+14)

Revolving Accounts

Discover : $3,107/$4,600 (67.5%)* 

Chase : $13,306/$20,800 (64.0%)

Cap One : $0/$300 (0%)

US Bank (AU): $0/$15,700 (0%)

Total: $16,413/$41,400 (40.0%)*

3/4/20 Report - Mortgage Scores

EQ: 668 (+9)

TU: 688 (No change)

EX: 664 (No change)

Revolving Accounts

Discover : $3,107/$4,600 (67.5%)* EQ Updated

Chase : $13,306/$20,800 (64.0%)

Cap One : $0/$300 (0%)

US Bank (AU): $0/$15,700 (0%)

Total: $16,413/$41,400 (40.0%)

3/16/20 Report - Mortgage Scores

EQ: 680 (+12)

TU: 703 (+15)

EX: 687 (+23)

Revolving Accounts

Discover : $0/$4,600 (0%)

Chase : $921/$20,800 (4.4%)

Cap One : $0/$300 (0%)

US Bank (AU): $0/$15,700 (0%)

Total: $921/$41,400 (2.2%)

Hard Inquiries

EQ: 1 (4/26/19)

TU: 0

EX: 1 (4/26/19)

My middle score is 13 points short of where I need it to get approved for a jumbo loan.  Is my score maxed out for now?  I was hoping to get at least 5 points for crossing each individual threshold; benefits for crossing aggregate thresholds; and a benefit for AZEO, so I expected 30-40 points but got nowhere close to that score bump.  Is my older degrogatory info is holding down the benefit of low utlization/AZEO?  I have tried GW's will Capital One, Navient, and Ally but have not had any luck.  Any input would be appreciated!

[donkort]

Try to bring the Chase card down to something minimal---like $50 or something.  That would be "true" AZE0.

Continue with those goodwill letters.  The old charge-offs and major lates are probably suppressing the score somewhat.

[Anonymous]

Thanks for your input. While I can do that, I am now skeptical of how much of an impact it will have based on the disappointing results that I have seen so far. Over the past two months I paid down substantial CC balance, crossing 8 individual thresholds and 2 aggregate, and my EQ only moved up 21 points.  If you don't assume any AZEO impact, that resulted in only 2.1 points for each threshold.  I think the frequency and severity of my lates from 2014 to early 2016 are killing my score and are diluting my utilization benefit.  With that said, I don't have any collections or public records on my CR's, just one charge off and a lot of old lates.  I know I'm a signficantly better credit risk than my score reflects which is the frustrating part. 

If I don't get my mid score to 700, I would have been better off going with a conventional loan and putting more money down a house - paying down credit card debt less aggressively later.  Perhaps, these data points will help others in a dirty scorecard calculate the varying levels of impact in crossing utilization thresholds.  For me, it was a lot less than others.  

[SouthJamaica]

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@Anonymous wrote:

I will be purchasing a home in the next couple of months and need to get my middle mortgage score to 700.  

1/16/20 Report - Mortgage Scores

EQ: 659

TU: 686

EX: 650

Revolving Accounts

Discover: $3,507/$4,600 (76.2%)

Chase : $16,410/$20,800 (78.9%)

Cap One : $0/$300 (0.0%)

Total : $19,917/$25,700 (77.5%)

2/17/20 Report - Mortgage Scores

EQ: 659 (No change)* Discover did not update on EQ yet

TU: 688 (+2)

EX: 664 (+14)

Revolving Accounts

Discover : $3,107/$4,600 (67.5%)* TU & EX updated

Chase : $13,306/$20,800 (64.0%)

Cap One : $0/$300 (0%)

Total: $16,413/$25,700 (63.9%)* TU & EX updated

**Nothing else changed from the previous month except for positive payments on an auto loan and handful of student loan accounts.  I am an authorized user on a $0/$15,000 card that I did not figure into any of the utlization ratios. 

While EX increased 14 points, I was surprised to see that EQ did not move at all and TU only moved 2 points.  Even though Discover has not updated on EQ, the Chase utilization went from 78.9% to 65.4% (crossed individual threshold of 68%) and aggregate utlization went from 77.5% to 65.4% (crossed aggregate 68% threshold), yet there was no change in score.  On TU, the Discover CC was updated, so it had Discover go from 76.2% to 67.5%, in addition to Chase and the aggregate utlizations crossing the 68% threshold. Based on what I have read, crossing the aggregate threshold should have been a 10-15 point bump and crossing the two individual thresholds should have been around a 5 point bump each - so I was expecting a 20-25 increase and only received 2 points. 

Addtional background, I have a Capital One charge off account from 7/2015 for $1,000 and several 60 & 90 day lates from 2015 & 2016 on student loans and a closed auto loan.  No late payments on any account after 2/2016 and currently one hard inquiry from 4/2019 on EQ and EX.  Based on the level of derogatory activity from 2015/2016, I imagine that I am in a dirty bucket.

Any thoughts on this? Thank you for your help!

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1. Mortgage scores don't change that fast.

2. Your revolving utilization on individual accounts is still way too high.

[Anonymous]

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@SouthJamaica wrote:

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1. Mortgage scores don't change that fast.

2. Your revolving utilization on individual accounts is still way too high.

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1. If the utilization substantially changes between reports, why would it not move quicker for the scoring related to the utilization component?  I know it won't age quicker or drop off derogatory marks quicker, but I did not see the extent of scoring impact on utilization that many reference on this board.

2. I think you missed my updated post.  I am at 2.2% total revolving utilization and AZEO, with a 4.4% balance on Chase.

[SouthJamaica]

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@Anonymous wrote:

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@SouthJamaica wrote:

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1. Mortgage scores don't change that fast.

2. Your revolving utilization on individual accounts is still way too high.

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1. If the utilization substantially changes between reports, why would it not move quicker for the scoring related to the utilization component?  I know it won't age quicker or drop off derogatory marks quicker, but I did not see the extent of scoring impact on utilization that many reference on this board.

2. I think you missed my updated post.  I am at 2.2% total revolving utilization and AZEO, with a 4.4% balance on Chase.

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Yes I did miss your March 16th update. Sorry about that. 

Nice going.

You averaged a 25 point gain in your mortgage scores; that's pretty significant. As I mentioned, mortgage scores don't move very quickly.

[Anonymous]

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@Anonymous wrote:

Thanks for your input. While I can do that, I am now skeptical of how much of an impact it will have based on the disappointing results that I have seen so far. Over the past two months I paid down substantial CC balance, crossing 8 individual thresholds and 2 aggregate, and my EQ only moved up 21 points.  If you don't assume any AZEO impact, that resulted in only 2.1 points for each threshold.  I think the frequency and severity of my lates from 2014 to early 2016 are killing my score and are diluting my utilization benefit.  With that said, I don't have any collections or public records on my CR's, just one charge off and a lot of old lates.  I know I'm a signficantly better credit risk than my score reflects which is the frustrating part. 

If I don't get my mid score to 700, I would have been better off going with a conventional loan and putting more money down a house - paying down credit card debt less aggressively later.  Perhaps, these data points will help others in a dirty scorecard calculate the varying levels of impact in crossing utilization thresholds.  For me, it was a lot less than others.  

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@Anonymous  Is that charge off paid or not?

Yeah, you may have a max score due to being in a dirty card.