Mortgage Score Impact - Less Than Expected

[Anonymous]

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@Anonymous wrote:

Thanks for your help.  Is there any risk of paying the Capital One charge off in full now so that they update to paid in full?  This was settled for less in 10/16.  I haven't done so already because I was concerned that it would affect a reporting timeline or activity on the account.  

My AoYRA is 1 yr 4 mo - which is my Discover Card.

The mortgage reason codes:

EQ5 (680 Score)

- You have a serious delinquency 60 days past due or greater

- You have one or more accounts showing missed payments

- You have a consumer finance acount on your credit report  (I have a closed account with One Main Financial that never had any missed payments and was paid in full in 2/2018)

- You have a short credit history (My AAoA is 9 years)

TU4 (703 Score)

- You have a serious delinquency 60 days past due or greater

- You have one or more accounts showing missed payments

- You have a consumer finance account on your credit report

- You recently missed a payment or had a derogatory indicator reported on your credit report (last missed payment on TU was 4y 7mo ago)

EX2 (687 Score)

- You have a serious delinquency 60 days past due or greater

- You have one or more accounts showing missed payments

- You have a consumer finance account on your credit report

- The remaining balance on your mortgage or non-mortgage installment loans is too high (7 student loans; remaining balances range from 54% - 84%)

Thanks again

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@AnonymousCurious, TU says recent...While I know you haven't had any derogatories recently, has one of your COs been updated within the last 24 months? For example, did you pay one off and they updated? Wondering why the recent.

Also, for S and Gs, What's your AAORA?

[Anonymous]

The CO hasn't been updated on TU since 12/2016.  The AAORA is 4 years 4 mo. 

[Anonymous]

My April updated mortgage scores were EQ 684, TU 703, and EX 687. 

Utilization

Discover: $0/4,600

Chase: $23/$20,800

US Bank: $0/$15,700

Capital One: $0/$300

Total: $23/$41,400

As far as I can tell, my score is essentially maxed out until the old derogatories fall off.  I did not receive the "rule of thumb" score bumps by crossing the utlization thresholds. 

[SouthJamaica]

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@Anonymous wrote:

I'm kind of in the same boat on a refi.  Dirty card and trying to get the Mortgage FICO's up.  I'm interested in your comment "mortgage scores don't move that quickly".  I would interpret that to mean there is a time / history / trend component as it relates to utilization, eg - even if you go to zero on the credit card balance in the current month, the algorithim somehow is looking at the previous month(s) and doing some sort of comparison.  is that right?   

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No I didn't mean that. What I meant was that relatively small changes in utilization, which can have a big impact in FICO 8, may not make much difference in the mortgage scores. IMHO the mortgage scores are more heavily weighted towards aging factors, which can't be changed overnight the way utilization can. I.e. such things as Average Age of Accounts, Age of Newest Account, Recent inquiries. The longer you do nothing whatsoever, the higher your mortgage scores will get. But it takes time. Lots of time.

[SouthJamaica]

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@Anonymous wrote:

My April updated mortgage scores were EQ 684, TU 703, and EX 687. 

Utilization

Discover: $0/4,600

Chase: $23/$20,800

US Bank: $0/$15,700

Capital One: $0/$300

Total: $23/$41,400

As far as I can tell, my score is essentially maxed out until the old derogatories fall off.  I did not receive the "rule of thumb" score bumps by crossing the utlization thresholds. 

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Nice job on getting those balances down.

[Anonymous]

@AnonymousWow, yeah, with AZEO, the only optimazations I could fathom would be lowering aggregate installment utilization, but that isn't worth very much, if anything on the mortgage scores. And I'm sorry if we've already covered it, but maybe letting inquiries age off, if any.

Unfortunately, I don't really see anything else in my opinion you can do, but let time heal it. This is 1 of the times I'd like to be wrong and someone correct me. Maybe I've missed something, but I don't see anything else.

No! Leave Cap1 alone, updating could hurt, tho probably not much since it hurts the most of the full 7 on COs, anyway. Sorry I missed that question.

I'm sorry and wish I could offer more, but I gotta be honest. I assume you have already went over your CRs with a fine tooth comb, ensuring there's nothing else? Goodwill campaign is my best advice.

[Anonymous]

I came up just short, but if failure means cleaning up my credit and paying down $19k in high interest credit card debt, then the pursuit was worth it. I hope my data points are helpful to others in a similar situation.

[Anonymous]

You've done well and are to be commended. Time will heal the rest. Patience, my friend, it will come.

[nmk94]

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@Anonymous wrote:

My April updated mortgage scores were EQ 684, TU 703, and EX 687. 

Utilization

Discover: $0/4,600

Chase: $23/$20,800

US Bank: $0/$15,700

Capital One: $0/$300

Total: $23/$41,400

As far as I can tell, my score is essentially maxed out until the old derogatories fall off.  I did not receive the "rule of thumb" score bumps by crossing the utlization thresholds. 

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Well, congratulations on eliminating those big balances that you started off with. That has to be a big relief and credit score aside, your financial (and mental!) health will be better off. Plus it will help when it comes time to get that mortgage if you keep those balances down. 

And thanks for all the DPs. It does suck to see a "maxed out score" until things age. I'm worried that I'm going to be in the same boat. I didn't expect to have to get a mortgage anytime soon, so I was letting some COs and a collection age off. Now I have to get them all down to zero, with the hope my score goes up.

[Duke_Nukem]

@Anonymous Have you pulled a 3B report since 4/26?  Noticed you had an inquiry on both EQ and EX on 4/26/19, which should have become unscoreable on 4/25 (due to leap year this year).  I gained 6 pts on EX2 when my inquiry became unscoreable in late March, so perhaps your EQ and EX received something similar (I'm also in a dirty scorecard).  The "seeking credit" reason code dropped off of my EX2 negative list when the inquiry hit 365 days old.

It may not be enough to get you over 700, but almost there... not sure if that would make you feel better or not.  It would probably feel more like a tease for me!