THOUGHT MORTGAGE WOULD HELP SCORE

[rom828]

Obtained FHA mortgage, first payment made Dec 1st.  Wells Fargo advises they are reporting but it's not showing up yet on CR.

Current fico EQ is 622.  SW simulator shows w/mortgage would have score of 597-627.

I thought having a mortgage improved the mix and thereby improved score.

Does it have more impact as time passes? 

Simulator shows a really big jump when I get my cards paid down(now at 70% utilization) so that's a priority for me.  3  other derogatory items (2 paid CO) drop off in '09 and 10 and then I'll be "clean"!!

How long before the mortgage reflects more positively on score?!?!

[Anonymous]

I was told a year before we saw anything positive show on our credit score..not sure it even has yet and it's well over a year.

I would be interested to know what other folks experience has been as well

  

[rom828]

Thanks for the response, but........

Wow, that's a little discouraging!

I know the mix of credit is only about 10% of score, but still seems a mortgage would have somewhat more or better impact.

I  hate to lose points, though....I've been working so hard these past two and half years to get everything cleaned, paid, etc, so I don't want   to take a backwards step.

I hope that if I do see a loss of points, it doesn't take a year to get them back!

[Anonymous]

The good news is they have not reported yet- and by time they do it will be 3 to 4 months old-

It will start to help at about 6 months-

Just keep paying on time and keep the UTL low-

[rom828]

Well, that's a little more encouraging, because just this morning rec'd my Scorewatch alert and my score is down by 2 points (now 620) with the addition of the Wells Fargo mortgage. 

That 620 really scares me.  as going down 1 more point puts me back in the really, really bad category....not that 620 is anything to brag about!  But I've worked very hard to get back in the 600's (was at 629 several months ago.....opening new accounts hit it) so I hate to lose any more ground. 

Hopefully at the 6 months mark I'll see an increase!

Is 6 months about the time frame that any type of account is not considered so 'new' anymore?!?

I have some older, 'paid never late' car loans on record,('97, 2000, 2004) as well as a '1998'  Master Card. 

I have a 12-05 Visa,  and  other accounts (retail)  opened '04, '06 and  in '07. 

I'm working on paying down Master Card and Visa to get to the 10%  or below level, and the retail accts (4) in total are at about that now and will be at 0% in next three months.  The retail accts I opened to improve utilization and mix, and I use them sparingly and have never been late.  I also on those use deferred billing option so I never pay interest.

I can't wait til I can get on this forum and announce I'm in the 700 club!!!!!!!!!!!

[Anonymous]

TU really like to see a mortgage (might be because they are using the old FIOC version - Ireally don't know)

Getting the revolving UTL down is where you will see the biggest increase.

Accounts are considered "New" for 1 year-

Installment accounts seems to get "Happier" after 6 months-

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rom828 wrote:

Well, that's a little more encouraging, because just this morning rec'd my Scorewatch alert and my score is down by 2 points (now 620) with the addition of the Wells Fargo mortgage. 

That 620 really scares me.  as going down 1 more point puts me back in the really, really bad category....not that 620 is anything to brag about!  But I've worked very hard to get back in the 600's (was at 629 several months ago.....opening new accounts hit it) so I hate to lose any more ground. 

Hopefully at the 6 months mark I'll see an increase!

Is 6 months about the time frame that any type of account is not considered so 'new' anymore?!?

I have some older, 'paid never late' car loans on record,('97, 2000, 2004) as well as a '1998'  Master Card. 

I have a 12-05 Visa,  and  other accounts (retail)  opened '04, '06 and  in '07. 

I'm working on paying down Master Card and Visa to get to the 10%  or below level, and the retail accts (4) in total are at about that now and will be at 0% in next three months.  The retail accts I opened to improve utilization and mix, and I use them sparingly and have never been late.  I also on those use deferred billing option so I never pay interest.

I can't wait til I can get on this forum and announce I'm in the 700 club!!!!!!!!!!!

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