Because of this site, I’ve truly become addicted to checking my scores, and I do this as soon as I wake up each morning!
Back history: I started my journey 11 months ago, never having credit. As I have mentioned before in previous threads, I had to have a credit score in order to purchase my condo. Following the advice of the bank I do business with, loan officer, I applied (and received) a secured Cap 1 cc, May of last year. I always paid in full. Three mos later, I got a used car loan and a store cc. Score went up, and then at the end of September, I applied for Amazon Prime and three days later, Chase Freedom. I was approved for both—the Amazon Prime ended up being the Chase Amazon Prime Visa. Then I stopped applying, as the loan officer I was working with, told me to come in at some point in December to see where I was at. I don’t remember what my FICO 8 scores were, but my middle FICO Mortgage score was 701 in Dec.. The LO gave me a list of docs I needed, and I could apply as soon as I got them all together. Within days, I went back to the bank, applied and the AUW approved me. I closed escrow the following month (Jan 11, 2019). As soon as I closed escrow, I applied for a Lowe’s cc and, opened a second checking /savings w/NFCU (for emergencies—thanks MyFICO forum, I would have never thought of doing this, but it makes so much sense!). It was suggested by the csr to apply for a cc, and I did and was approved (this was a couple of weeks after I opened my checking/savings acct). I went back into gardening, but then I received a Citi Costco approval in the mail at the beginning of Feb., and again, was approved for Citi Costco VISA. Two weeks later, I get another offer in the mail from AmEx. I applied and was approved for the Every Day card. I truly am not going to apply for anything else, I’ve since been in the garden. My FICO 8 scores are TU 730, EX 730 and EQ 720 (this hasn’t updated since March 16th). TU and EX updated this past Wed and Friday.
My question is, over the course of the last 11 months, my scores have jumped from 620 to what they are now. My mortgage hasn’t reported yet, so I know I’ll take a hit from this when it does, but if things remain the same—by this I mean no more apps, continue to pay in full, continue to keep my utilization low (I average 2%) and age my accounts, is it possible for me to see my scores rise to 750 or higher by October? Or, will the reporting of the mortgage pull me down enough where it will be impossible? And will my scores start to slow down? I’m truly OCD with my scores, and will have anxiety attacks if they drop more than a couple of points.
I kindly thank you for the information.
Back history: I started my journey 11 months ago, never having credit. As I have mentioned before in previous threads, I had to have a credit score in order to purchase my condo. Following the advice of the bank I do business with, loan officer, I applied (and received) a secured Cap 1 cc, May of last year. I always paid in full. Three mos later, I got a used car loan and a store cc. Score went up, and then at the end of September, I applied for Amazon Prime and three days later, Chase Freedom. I was approved for both—the Amazon Prime ended up being the Chase Amazon Prime Visa. Then I stopped applying, as the loan officer I was working with, told me to come in at some point in December to see where I was at. I don’t remember what my FICO 8 scores were, but my middle FICO Mortgage score was 701 in Dec.. The LO gave me a list of docs I needed, and I could apply as soon as I got them all together. Within days, I went back to the bank, applied and the AUW approved me. I closed escrow the following month (Jan 11, 2019). As soon as I closed escrow, I applied for a Lowe’s cc and, opened a second checking /savings w/NFCU (for emergencies—thanks MyFICO forum, I would have never thought of doing this, but it makes so much sense!). It was suggested by the csr to apply for a cc, and I did and was approved (this was a couple of weeks after I opened my checking/savings acct). I went back into gardening, but then I received a Citi Costco approval in the mail at the beginning of Feb., and again, was approved for Citi Costco VISA. Two weeks later, I get another offer in the mail from AmEx. I applied and was approved for the Every Day card. I truly am not going to apply for anything else, I’ve since been in the garden. My FICO 8 scores are TU 730, EX 730 and EQ 720 (this hasn’t updated since March 16th). TU and EX updated this past Wed and Friday.
My question is, over the course of the last 11 months, my scores have jumped from 620 to what they are now. My mortgage hasn’t reported yet, so I know I’ll take a hit from this when it does, but if things remain the same—by this I mean no more apps, continue to pay in full, continue to keep my utilization low (I average 2%) and age my accounts, is it possible for me to see my scores rise to 750 or higher by October? Or, will the reporting of the mortgage pull me down enough where it will be impossible? And will my scores start to slow down? I’m truly OCD with my scores, and will have anxiety attacks if they drop more than a couple of points.
I kindly thank you for the information.
Starting Score: 784
I’ll be honest, I too, thought the accounts added would have tanked (to a degree) my scores. The one thing I didn’t do was apply for multiple in a day. This is why I’m somewhat perplexed as to how my scores will react once my mortgage hits. I should mention too, the car loan was paid off (it was the banks requirement for the home loan). Could this be why?
I keep reading how a mortgage first reporting, will drop Fico scores around ten points. This all is confusing to me, as I thought the paid off car loan continues to affect ones scores. I have so much to learn.
@Anonymous wrote:If your car loan has reported closed already and you have no other open installment loans, you're not satisfying "credit mix" currently and will regain it when your mortgage reports. While your mortgage reporting could drop your scores a bit from the reduced age of accounts, any drop would likely be muted if not completely overcome by the credit mix being satisfied once again.
@CAS2019 wrote:I keep reading how a mortgage first reporting, will drop Fico scores around ten points. This all is confusing to me, as I thought the paid off car loan continues to affect ones scores. I have so much to learn.
@Anonymous wrote:If your car loan has reported closed already and you have no other open installment loans, you're not satisfying "credit mix" currently and will regain it when your mortgage reports. While your mortgage reporting could drop your scores a bit from the reduced age of accounts, any drop would likely be muted if not completely overcome by the credit mix being satisfied once again.
Thanks, your response is very much appreciated, as I think I understand. I just hope it gets reported this month, so I can see where I actually stand.
@jamie123 wrote:@CAS2019 wrote:
I keep reading how a mortgage first reporting, will drop Fico scores around ten points. This all is confusing to me, as I thought the paid off car loan continues to affect ones scores. I have so much to learn.
You have a lot going on with your credit reports right now. It will probably take a couple of months before everything settles down. You might change scorecards and that could also effect your scores. You will have a better idea of where you stand in a couple of months. At that point, no matter what your scores are, they will start an upward trend month to month as long as you keep your UTI low and pay your bills on time. Make sure to setup all your credit cards to automatically pay the minimum payment each month. Last thing you need is to forget to make a payment in this busy time of your life.
Thank you, Jamie. I do have all of my accounts on autopay, in addition, I check my accounts daily (I AM OCD, after all). I appreciate you (and BBS) taking the time to clarify things for me.
I just received an alert that my TU score dropped seven points to 23, my mortgage has hit the credit bureaus. I haven’t received EX or EQ scores yet. Experian always seems to be my lowest score, so, I’m anxious to see the results.