@Anonymous wrote:
My husband had a mortgage score of 600 with Experian. Haven't checked the other s yet. Planned to in 3 months. Anyway he has $2024 in charge offs $792 with b of a and $1232 with cap one that will be paid and $8000 and in auto debt for the past 2 years that's always current. In the mean time he got a secured discover $200 and FICO 2 dropped to 586. I know a dip can be expected, but today I checked and it's a 566! We just got the discover haven't even received the first statement just reported as a new account. Is this normal? It's been stable at 600 before this.
In my opinion the mortgage scores are particularly sensitive to new credit-seeking. I.e. new inquiries, new accounts. In my opinion the best thing for your mortgage scores is to not apply for new credit.
The CO's getting paid will probably make up for it honestly.
I probably would've gone a different optimization path and paid them and then saw where scores were before opening accounts but what's done is done. We don't have great data around the mortgage scores regarding new accounts as we only recently got really good access to Experian FICO 2 and it's been a while since EQ FICO 5 monitoring was available from here.
Where are you monitoring your score? If it's at Experian check the reason codes as having a CO should put him in the derog scorecard and new accounts don't seem to factor there at least on EQ/TU, not sure on EX as that's an older algorithm.
Current working data is there may be a bump at 3 months and then maybe 6 months, as for full rebound time hard to say but when I was first establishing credit (with a bunch of negatives) I got non-trivial bumps over the first year. His file is a little different with that auto loan but that just means he's ahead of where I was too.
Stop doing anything else with the report (other than paying the CO's) though and let the scores settle out, make sure a small balance is reported on the secured card when you check again.
I saw about a 20pt increase in my EX mtg score 4 months after opening a new account, considering all other things are equal (number of accts reporting and UTL)
I have no clue about CO impact but in additional to new accts, EX mtg score is also sensitive to # of accts reporting a balance and UTL. I see anywhere between 11 - 22 pt decrease when I report balances on more than 4 accts out of 12 (including loans). The variance is then dependent on UTL on my CC, (even below 8.9% aggregated and below 25% individual).
