@Anonymous wrote:
I am actually closing on a house in August, so I'm thinking the installment utilization may have some impact on my mortage scores. I'm hoping it won't be too much. I'm also in school right now, so payments are on a deferred status. I qualify for the IBR, which is at $155.89, so I'm still going to apply those payments so interest won't accrue too much.
I'm also 14 days away from requesting early exclusion on two of my Experian collections. One is National Credit Systems, which is scheduled to removed in August 2017. Everytime I call and request the EE, the supervisor says I need to call back May 15. That collection is $4,181 so it will be great to get that off. My other EE is one of the Berks Collections, which is also scheduled to come off in August and Experian supervisor says wait until May 15.
The general issue you are raising is this. Which causes a bigger scoring penalty.... (a) to have a 0% installment utilization (closed loans all paid off) or (b) > 95% installment utilization (open loans, very little of which are paid off)?
I am not sure we have a definite answer to that. I am guessing that (a) and (b) may involve roughly the same penalty for both EX mortgage and FICO 8 (EX, TU, EQ).
That's the general issue. But you rightly perceive that your very particular situation involves a lot of complicating factors. For example the fact that the loans that will be coming on in a month are student loans in deferment. There's a chance those are score differently from (say) an auto loan.
More importantly you have all kind of known confounders: like derogs coming off at the same time, CC balances being optimized, etc.
So in your particular case, the takeaway message is that lots of stuff will be happening to your scores, but you shouldn't expect A vs. B to be that big of a deal. And you have lots of known good stuff happening. So relax, keep on doing what you know to be good, and continue to track your mortgage scores.
