need expert advice please. fico 8 vs fico5

[Anonymous]

Can all the experts please let me know what I should be doing to increase my score. My FICO8 scores are increasing since paying down one of my capital one secured cards, but the FICO5,4, and 2 are still pretty low and I'd like to purchase a home in the very near future. 

FICO8 :EQ 636 / TU 624 / EX 626 -- i was just in the 500s a few months ago

FICO 5,4&2 as of 7/19 - that was my last report refresh. EQ 593 / TU 611 / EX 578

why is there such a huge difference in scores? I'm so close to 640 with my fico8 scores, but i just learned that mortgage companies pull the 5,4&2 scores which are WAY off. I need at least a 640 for a mortgage loan. 

Open

Kohls & Victoria's Secret both reporting $0.  

Capital One Bank Usa - i actually just paid this one down and the balance on it is only $69.00. that should be reporting after the statement close on 7/26.

	EQUIFAX	TRANSUNION	EXPERIAN
Last Updated	07/2019	07/2019	07/2019
Payment Status	Pays account as agreed	Paid or paying as agreed	This is an account in good standing
Worst Delinquency	None Reported	None Reported	No update received
Balance	$412	$455	$412
Credit Limit	$500	$500	$500
Credit Utilization	82%	91%	82%

Wells Fargo Dlr Svc/

	EQUIFAX	TRANSUNION	EXPERIAN
Last Updated	06/2019	06/2019	06/2019
Payment Status	Pays account as agreed	Paid or paying as agreed	This is an account in good standing
Worst Delinquency	None Reported	None Reported	No update received
Balance	$25,690	$25,690	$25,690
Credit Limit	–	–	–

Liberty Bay Credit U

	EQUIFAX	TRANSUNION	EXPERIAN
Last Updated	06/2019	06/2019	06/2019
Payment Status	Pays account as agreed	Paid or paying as agreed	This is an account in good standing
Worst Delinquency	None Reported	None Reported	No update received
Balance	$2,653	$2,653	$2,653
Credit Limit	–	–	–

Capital One Bank Usa - paid off...balance on this is currently $9.99. this brought my utilization down and increased my scores by a little bit. 

	EQUIFAX	TRANSUNION	EXPERIAN
Last Updated	07/2019	07/2019	07/2019
Payment Status	Pays account as agreed	Paid or paying as agreed	Current account/was 30 days past due date
Worst Delinquency	30 days past due	None Reported	30 days delinquent
Balance	$180	$180	$180
Credit Limit	$200	$200	$200
Credit Utilization	90%	90%	90%

Nordstrom/Td Bank - will pay  190 balance as it's still reporting as an open account. 

	EQUIFAX	TRANSUNION	EXPERIAN
Last Updated	07/2019	06/2019	06/2019
Payment Status	Charge-off	Charged off as bad debt	Unpaid balance reported as a loss by credit grantor
Worst Delinquency	Bad debt/collection	None Reported	Charge Off/Other Derog
Balance	$190	$190	$190
Credit Limit	$500	$500	$500
Credit Utilization	38%	38%	38%

[Anonymous]

Pay off your cards and leave a small $5-$10 balance on Cap1 each month and you'll see your best scores. 

If those aren't high enough then you'll look to what can be scrubbed off your reports to improve them further.

[Anonymous]

I am by no means an expert, but before you pay that 190 balance you should head over to the rebuilding forum and study up on PFD, pay for delete.

If you just pay it off the charge off will remain on your report and continue to harm your scores. You may be able to work a pay for delete agreement, so it is deleted.

That charge-off is hurting all of your scores dramatically. If you could do a PFD, your scores would raise significantly most likely if that’s your only derogatory.

And plus one to what Obscure-expert said, the mortgage scores love zeros, as SJ would say.

[HeavenOhio]

You'll have some points coming when the Capital One cards update. Your individual card utilization (the card with the highest balance) was previously at 90%. Now, it's going to be a little under 40%. Also, your overall utilization will be reduced from 65% to 17%.

Definitely try for a pay for delete on the Nordstrom card.

[Trudy]

Everything provided by the previous posters are on point.  Just to paraphrase in general terms.

-MTG scores are positively impacted when there's low UTL and under 40% of CC reporting a balance (it may be just above 30%,).  

-The rule of thumb here is have only one card report a small balance to avoid no UTL penalty and limit the # of accts reporting a balance.

-No new accounts within a year of applying for a MTG.

*UTL has no memory so if you can get it down to the above within the time your scores are pulled and throughout the loan application should they pull again then you can maximize your scores in that respect.  The PFD will likely provide your greatest increase but the other items impact your MTG score as well.

Guru's please correct me if I'm wrong.

I'll state the disclaimer that each profile may vary. 

[Anonymous]

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@HeavenOhio wrote:

You'll have some points coming when the Capital One cards update. Your individual card utilization (the card with the highest balance) was previously at 90%. Now, it's going to be a little under 40%. Also, your overall utilization will be reduced from 65% to 17%.

Definitely try for a pay for delete on the Nordstrom card.

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Thank you! I just put together the PFD letter to Nordstrom. Hopefully it works! 

[Anonymous]

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@Anonymous wrote:

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Thank you! I just put together the PFD letter to Nordstrom. Hopefully it works! 

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If not, don't be afraid to try again... perhaps several times, using different addresses.  Good luck though for sure!