Mortgage - Stuck just below 700... NEED a 700

[Vandervecken]

Hello all!

Long story short: I need to relocate 60 miles to take care of an elderly relative.  My current home has FHA mortgage (refinanced last year after a divorce).  COVID-19 has roiled the mortgage markets, and I don't have a full 20% to put down.  A local credit union is working with me for a 10% down mortgage, but two of my three bureau scores must be 700 or above.

Last month my scores were 696 (Equifax - FICO 5), 703 (TU - FICO 4) and 698 (Experian - FICO 2).  These are the FICO versions the credit union uses.  But at the same time, I had $3000 on a "0%/36 month" credit account.  So I thought I'd be smart and pay it off.  I did, and the only change was that my Experian FICO score dropped to 690.

Other details: divorce shoved me into a Chapter 7 bankruptcy, which was discharged in August 2017.  All secured loans at the time were reaffirmed and paid off.  Since then:

• Four credit cards (two VISA, two Sweetwater consumer).  Total credit line is $16,500.  $0 balance on all of them.
• Mortgage, paid 100% on time.
• Auto loan, paid 100% on time.
• Student loans (thanks to the ex-wife), being paid but the government is reporting them in deferment due to COVID-19.

I really can't think of anything else to do.  I've heard a rumor that having $0 balance on a credit card will actually lower a score, but then again, having over 10% will too.

Any ideas?  Thank you all!

[DebtStinks]

It appears you're close enough that having 1 revolving credit card (not a charge card, etc.) reporting a balance of 1% but not more than 8.9% of its respective credit line should hopefully get you the points you need. You're very close, so I'd also recommend not having any new inquiries, etc or other changes on your credit report before your lender pulls credit again.

Hope this helps.

[AllZero]

@Vandervecken  Great advise from above. Reporting all zero utilization on revolving accounts will gain you penalty points.

Look into AZEO Technique. All Zero Except One card reporting a small balance e.g. $5-$10.

[Vandervecken]

Thank you everybody!

I have a CC that is due to cycle/report in 10 days, I think I'll go fill up the car using the card and let the balance roll.  Maybe then I can get EQ or EXP to hit 700.

[AllZero]

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@Vandervecken wrote:

Thank you everybody!

I have a CC that is due to cycle/report in 10 days, I think I'll go fill up the car using the card and let the balance roll.  Maybe then I can get EQ or EXP to hit 700.

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Hope you get the points you need. Report back if you get it.

[Vandervecken]

Just a quick follow-up:

I've hit AZEO, and it's reported to EQ and EXP (still waiting on TU to update.)  And at the same time, a mortgage from a rental house that I sold 10 years ago has fallen off the TU report (the mortgage was 100% paid on time.)  It had already fallen off EQ, and is still on EXP.

Previously my mortgage FICOs were EQ-696, TU-703, EXP-698.  As of yesterday, they've changed to EQ-691, TU-688, EXP-702.

I can't get a break!   In the words of Charlie Brown: AAAUUUGGGHHH!!!!  Maybe when the AZEO gets to TU, the TU score will pass 700 too.  I need two scores at 700 or above.

[nmk94]

As everyone mentioned, AZEO will help. When it reports to TU that may push you up. The mortgage models are much more dependent on revolving lines of credit than FICO 8 from my understanding.

To confirm, you have a bankruptcy that was discharged in August 2017. So in a month or so it will be 3 years old? Just asking outloud to others who may know, but do BK's "age" like other deliquencies in that they get weaker over time?

What did you lender say about the student loans with the deferment status. Does that affect your scores?

[Vandervecken]

I just wish TU would hurry up and process.  Capital One updates all three bureaus on the day after the statement is generated.

As far as the student loans, mine are owned by the government.  From what the servicer told me, unless the borrower has requested otherwise, ALL federally-owned student loans are automatically reporting as "deferred" due to COVID-19 instructions from the Department of Education.  When I mentioned this to the loan officer, she said "we'll just use 1% of the balance as your payment for calculating your DTI."  

[Vandervecken]

And a very quick update... TransUnion processed.  My scores are now: EQ-691, TU-703, EX-702.  Middle score is above 700!  Yay!!!!!  I've reached out to the bank and we're moving forward.

AZEO works!  Thank you everybody!!!

[AllZero]

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@Vandervecken wrote:

And a very quick update... TransUnion processed.  My scores are now: EQ-691, TU-703, EX-702.  Middle score is above 700!  Yay!!!!!  I've reached out to the bank and we're moving forward.

AZEO works!  Thank you everybody!!!

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Congratulations on your success!