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Raising Mortgage scores quickly

T24y
New Visitor

Raising Mortgage scores quickly

Hi  I was hoping to incease my mortage scores quickly

FICO 8

EX 699

EQ 679

TU 702

Morgage Scores

EX 625

EQ 661

TU 619

 

I have a collections on my Equifax that has been removed from the other Bureaus. I have 2 CC

1st card

Balance $100

Limited $3500

 

2nd card (closed)

Balance $1477

Limit $4500

 

I have some late payments reported that i am working to get removed through GW, but wasnt sure if doing anything with the credit cards above would be able to help. SHould i payoff the one that is closed or just keep paying it down?

Message 1 of 8
7 REPLIES 7
calyx
Super Contributor

Re: Raise Mortgage scores quickly

Unfortunately, there is no "quickly" when it comes to mortgage scores.

What is the age of the collections account?  With EQ being your high score, it seems that somehow that account is actually positively helping your mortgage score (the older scores like older accounts more than anything).


I would pay off the closed account - it's likely being factored into your utilization, and if anything would at least help your file look better.    Admittedly, I'm not sure how much it would or wouldn't help your scores - I haven't been paying attention to reports of how mortgage scores read closed accounts.


RIP:

F8 EQ: 815 | EX: 801 | TU: 805 | Accounts: 1/6 3/12 6/24
Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 2 of 8
AllZero
Super Contributor

Re: Raising Mortgage scores quickly


@T24y wrote:

Hi  I was hoping to incease my mortage scores quickly

FICO 8

EX 699

EQ 679

TU 702

Morgage Scores

EX 625

EQ 661

TU 619

 

I have a collections on my Equifax that has been removed from the other Bureaus. I have 2 CC

1st card

Balance $100

Limited $3500

 

2nd card (closed)

Balance $1477

Limit $4500

 

I have some late payments reported that i am working to get removed through GW, but wasnt sure if doing anything with the credit cards above would be able to help. SHould i payoff the one that is closed or just keep paying it down?


@T24y   I would recommend paying the closed card to zero.

 

You probably are receiving a score penalty by having it at 33% individual and 20% aggregate utilization if the closed credit limit is still factored into the algorithm. Since the card is closed, the closed credit limit probably is not factored into the algorithm, then your aggregate utilization % will be a lot higher e.g. 45%.

 

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

From Birdman7
General Scoring Primer and Version 8 Master Thread, pub.5.17.20

Message 3 of 8
T24y
New Visitor

Re: Raising Mortgage scores quickly

Thanks, per myFico, the closed credit limit is still being factored into account. It shows the 20% aggregate, so i wasnt sure if it would be better to have the open account at 0 and pay down the close account as normal.

Message 4 of 8
AllZero
Super Contributor

Re: Raising Mortgage scores quickly


@T24y wrote:

Thanks, per myFico, the closed credit limit is still being factored into account. It shows the 20% aggregate, so i wasnt sure if it would be better to have the open account at 0 and pay down the close account as normal.


Thanks for the data points.

 

If in the position to pay off the closed card, I would recommend doing it. Then, report a small balance on your open card.

Message 5 of 8
gdale6
Moderator

Re: Raise Mortgage scores quickly

Opening 2 more credit cards should raise your scores (Fico 8) as 3 is the minimum to really drive your Fico. Paying off the low balance one and continuing to drop the balance on the closed one should raise your Fico some. You want only 1 card reporting a small balance to the CRAs each month when trying to maximize Fico scores. I also didnt see the mention of any installment loans, have any?

Message 6 of 8
T24y
New Visitor

Re: Raise Mortgage scores quickly

Yes, i have student loans (6 accounts) and a mortgage.

Message 7 of 8
SouthJamaica
Super Contributor

Re: Raising Mortgage scores quickly


@T24y wrote:

Hi  I was hoping to incease my mortage scores quickly

FICO 8

EX 699

EQ 679

TU 702

Morgage Scores

EX 625

EQ 661

TU 619

 

I have a collections on my Equifax that has been removed from the other Bureaus. I have 2 CC

1st card

Balance $100

Limited $3500

 

2nd card (closed)

Balance $1477

Limit $4500

 

I have some late payments reported that i am working to get removed through GW, but wasnt sure if doing anything with the credit cards above would be able to help. SHould i payoff the one that is closed or just keep paying it down?


1. Keep trying to get rid of the negatives.

2. Yes you should immediately pay off the one that is closed.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 8 of 8
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