@SouthJamaica wrote:
@Elizablue wrote:As background and I think I already posted about doing this. I took out a re-fi on my primary and paid off all my rental properties. Well as you can imagine this caused all my scores to plummet (high 700s and low 800s down to mid 700s
) because I replaced perfect old credit with new credit. I hadn't expected that to happen but was in a better financial position because of it.
Then I transferred a high ratio credit card (50%) to a zero balance card. Then on the previous high ratio card I asked for a double limit increase. Once I got it, that score eventually leveled out and starting going up because I had it under 30% use. I did that again and got a limit increase to get another card to 20% ratio. After that everthing was on auto pay and should have continued to go up. But instead the mortgage payments to the new primary started dropping my score.
I seriously doubt that making mortgage payments dropped your score.
The only alert I received would be the message below and a corresponding score. This only happened 2-3 days after my mortgage posted. There wasn't any other activity at all. When I spoke to someone at FICO I was told it had nothing to do with me paying a mortgage note. But they could not explain why it was only happening when I paid my mortgage.
"The total balance on all your Mortgages has changed. " And to the left of that would be my score with the red down arrow.
@Elizablue wrote:
@SouthJamaica wrote:
@Elizablue wrote:As background and I think I already posted about doing this. I took out a re-fi on my primary and paid off all my rental properties. Well as you can imagine this caused all my scores to plummet (high 700s and low 800s down to mid 700s
Then I transferred a high ratio credit card (50%) to a zero balance card. Then on the previous high ratio card I asked for a double limit increase. Once I got it, that score eventually leveled out and starting going up because I had it under 30% use. I did that again and got a limit increase to get another card to 20% ratio. After that everthing was on auto pay and should have continued to go up. But instead the mortgage payments to the new primary started dropping my score.
I seriously doubt that making mortgage payments dropped your score.
The only alert I received would be the message below and a corresponding score. This only happened 2-3 days after my mortgage posted. There wasn't any other activity at all. When I spoke to someone at FICO I was told it had nothing to do with me paying a mortgage note. But they could explain why it was only happening when I paid my mortgage.
"The total balance on all your Mortgages has changed. " And to the left of that would be my score with the red down arrow.
The fact that the total balance on your mortgages changed triggered the alert.
When the alert is sent it also visually notes any score change.
But the score change was not caused by the downward change in balances; it was caused by something else.
Couple of things.
Transunion is frankly off for all the third party monitoring sites with their inquiry issue and think I've started to see reports of tradeline issues too, and scores are going to bounce all over the place as a result potentially. The mortgage balance is a trigger on TU, it's not on either of the other two services here, as such it's the only one triggering any type of score updates. Paying down your mortgage is never a negative, paying it OFF on the other hand, well...
The reason you got slapped from 780-800ish by 30-40 points (I'm guessing at the size of the shift) is you likely were below the pretty 10% line on your aggregate installment utilization; when all of the rental properties reported paid/closed, and you refinanced the primary, your installment utilization went from pretty to near 100% which takes you to worst case scenario on that part of the scorecard.
I really wouldn't read much into it at the moment, finances > FICO so if it made sense financially to do all of that, don't sweat the credit score impact: fact is having an 800 isn't really a big deal in the market these days other than personal pride. The small fluctuations, eh. It'll sort out and I'm guessing you don't have any big applications coming up for a while anyway with the mortgage refi sorted unless you're planning for another investment mortgage?
