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Saying Goodbye to the 850's

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Contributor

Saying Goodbye to the 850's

It's been a lot of fun floating sky high at the top. Sadly, all good things must end. After over 48 consecutive months of maintaining 850 on EX and TU and nearly 24 consecutive months sustaining the hat trick, the train ride finally stops here. Because very soon, a new mortgage loan will report on my CR's. I haven't seen any drop in scores as a result of the mortgage inquiry, but when the new loan reports I'm probably looking at a 20-40 point drop.

 

I'm hoping to pay this 30 year note off in 5-7 years, so it'll be a while before I can regain 850. It was fun while it lasted, but I suppose the whole point of achieving high scores was to be able to land a low interest rate loan.  And of course for the bragging rights ; ).  It's going to feel wierd being kicked out of the exclusive 850 club, I'm going to hopefully make it back there sooner than later Smiley Happy

EX-8 825
TU-8 825
EQ-8 824
Message 1 of 15
14 REPLIES 14
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Super Contributor

Re: Saying Goodbye to the 850's

Congratulations on your success! Pick up a few cards on the way back to the garden. Smiley Wink

Message 2 of 15
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Established Contributor

Re: Saying Goodbye to the 850's

Congrats on 4 years! WOW

 

Scoring used for intended purpose, well done!



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Message 3 of 15
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Contributor

Re: Saying Goodbye to the 850's

Thanks! I will definitely pick up some new cards now that 850 is no longer going to be achievable anytime soon. Yeah, 48+ months went by like it was yesterday. It would have been over 60 consecutive months at 850, had I not gotten a car loan a few years back. I hope to at least stay over 820 once the mortgage hits my reports.  

EX-8 825
TU-8 825
EQ-8 824
Message 4 of 15
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Frequent Contributor

Re: Saying Goodbye to the 850's

Wow! That much of a hit, huh? Crazy. However you definitely pimped that 850 for the best of reasons. What were your key data points that helped you maintain?


 

FICO 8:  EQ:687  TU:728  EX:735
Message 5 of 15
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Moderator Emeritus

Re: Saying Goodbye to the 850's


@Octopus wrote:

It's been a lot of fun floating sky high at the top. Sadly, all good things must end. After over 48 consecutive months of maintaining 850 on EX and TU and nearly 24 consecutive months sustaining the hat trick, the train ride finally stops here. Because very soon, a new mortgage loan will report on my CR's. I haven't seen any drop in scores as a result of the mortgage inquiry, but when the new loan reports I'm probably looking at a 20-40 point drop.

 

I'm hoping to pay this 30 year note off in 5-7 years, so it'll be a while before I can regain 850. It was fun while it lasted, but I suppose the whole point of achieving high scores was to be able to land a low interest rate loan.  And of course for the bragging rights ; ).  It's going to feel wierd being kicked out of the exclusive 850 club, I'm going to hopefully make it back there sooner than later Smiley Happy


Not so sure on that assessment, wait and see when that new loan hits as unless it materially changes your installment utilization (which I don't remember on your file) installment loans don't appear to be the same as revolvers as far as new accounts go for FICO 8.

 

On the inquiry side, mortgage inquiries count 30 days later (grace period) so look for any damage then.  Also if you can play reindeer games with the mortgage depending on who the servicer is and if they push your due date ahead out into the future, pay it way down and not off and you'll be back at 850 by that point anyway.




        
Message 6 of 15
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Contributor

Re: Saying Goodbye to the 850's


@805orbust wrote:

Wow! That much of a hit, huh? Crazy. However you definitely pimped that 850 for the best of reasons. What were your key data points that helped you maintain?


 


The hit ended up being 25-26 points on all 3. Pretty disappointing seeing my perfect scores take a nosedive like that, but it was to be expected. As far as data points, these were the main ones I can think of:

- Extremly low utilizations (<1%)

- No new inquiries, no new credit

- AAOA > 15 years, and AOOA > 20 years

- 9 revolving cc accounts

- 1 open SSL loan paid down <9% so I could have at least one installment reporting

 

Also, it seems they placed me in a rare bucket where AZEO was not mandatory for me to maintain 850. There were many months where I carried a balance on multiple cards, sometimes on just one card, and other months where I carried no balance on any cards. 

EX-8 825
TU-8 825
EQ-8 824
Message 7 of 15
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Contributor

Re: Saying Goodbye to the 850's


@Revelate wrote:


Not so sure on that assessment, wait and see when that new loan hits as unless it materially changes your installment utilization (which I don't remember on your file) installment loans don't appear to be the same as revolvers as far as new accounts go for FICO 8.

 

On the inquiry side, mortgage inquiries count 30 days later (grace period) so look for any damage then.  Also if you can play reindeer games with the mortgage depending on who the servicer is and if they push your due date ahead out into the future, pay it way down and not off and you'll be back at 850 by that point anyway.


Revelate, thanks for your input. I'm not sure I can pay it down that fast, at least not for the first couple of years. But come 2022 I expect to be able to pay of big chunks at a time. So I'm probably stuck around 825-830 for another 2 years. I remember a few years ago I took out an auto loan shortly after I first hit 850. My score took an even bigger drop (down to around 815 or so). I paid off the 60 month loan in 16 months, but I had regained 850 in less than 6 months after the loan first reported. 

As someone suggested, I might use this time to load up on some new cards while my score is no longer in danger of getting toppled from 850 ; )

EX-8 825
TU-8 825
EQ-8 824
Message 8 of 15
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Senior Contributor

Re: Saying Goodbye to the 850's


@Octopus wrote:

It's been a lot of fun floating sky high at the top. Sadly, all good things must end. After over 48 consecutive months of maintaining 850 on EX and TU and nearly 24 consecutive months sustaining the hat trick, the train ride finally stops here. Because very soon, a new mortgage loan will report on my CR's. I haven't seen any drop in scores as a result of the mortgage inquiry, but when the new loan reports I'm probably looking at a 20-40 point drop.

 


I am anticipating a drop from 850 as well. My only open loan, a mortgage, will be paid off in October. No other open or closed installment loans on file. Been at 850 for 6.5 years. Estimating a nominal 30 point drop in Fico 8 but, who knows. Ubuntu reportedly had an 850 for a short time with only a few open and closed revolving accounts (no installment loans) on file. It will be interesting to see how the "no open installment loan" penalty impacts my Fico 9 scores relative to Fico 8. Guessing no penalty in the older Fico 98 and Fico 04 "mortgage" versions

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 9 of 15
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Super Contributor

Re: Saying Goodbye to the 850's

An AoYA reset to 0 months often is "worth" 20-25 points, so my guess is that in 12 months time your scores will return mostly back to where they were. 

 

I've maintained 850s for several years now with installment loan utilization being in the 70s (mortgage) so one can get there without having ideal installment loan utilization.

 

I appreciate the data OP, as I'm looking toward a refi in the next 6 months or so and it gives me an idea of what to expect scoring wise.

Message 10 of 15
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