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older Mortgage/Bankcard/Auto scores & Credit Seeking

Valued Contributor

older Mortgage/Bankcard/Auto scores & Credit Seeking

This may be well-known, but it was hammered home to me when I recently looked at year-old scores.  My Mortgage 5, Auto 5 and Bankcard 5 scores are the same or worse than a year ago, while the rest are significantly improved. 

 

The only significant differentiators are new bucket (a 30-day late fell, leaving me with a clean slate), an AAoA which dropped from 100 to 85 monthsTT, and a corresponding increased delta between AAoA and AoOA (19 years then, 20 years now).  My aggregate util remains below 8.9%.  At ~2%, it's likely lower now than it was then.

 

Compared with a year ago, my EQ FICO 8 is up 55; the Bankcard 8, 56. All the FICO* 9 scores are up.

 

In contrast, the Mortgage and Auto 5 scores are the same (774, 795), while the Bankcard 5, at 787, is 12 points lower than a year ago.

 

The unsurprising bottom line: if you plan to get a mortgage or car loan (or really want that shiny new card), don't app for at least 6 months beforehand.

2019 Goals: actually garden; save 3 months' net income; clear the BT cards
2020 Goal: Chase Freedom (Q2)

EQ8059 INQ (5 CC, 2 mort, phone, CU)
EX80610 INQ (6 CC, 2 HELoan, 2 mort)
TU8297 INQ (5 CC, 2 mort)
9/24 < 2% AAoA 6.25y | AoYA 1m | AoOA 20y
Take the myFICO Fitness Challenge [ Last INQ 7-Jan-2019 ]
I can garden. Yes, I can. I guess..
Message 1 of 6
5 REPLIES
Moderator Emeritus

Re: older Mortgage/Bankcard/Auto scores & Credit Seeking

Actually inquiries count for the full year no fading on EQ FICO 5.

 

If you're really prepping for a mortgage and you're not so far above 740 it doesn't matter, just stop apps altogether as any inquiry within a year could knock you down a tier which might be an additional .25 or .50 on your rate, and seems suboptimal for getting a credit card or whatever.  Some exception for refinancing loans to clear the DTI hurdle, but otherwise for those of us that weren't gold plated going into a mortgage app, it's best to put as much lipstick on the pig as possible.




        
Message 2 of 6
Valued Contributor

Re: older Mortgage/Bankcard/Auto scores & Credit Seeking

Hmmm.  Excellent data point.  Still, most of my INQs were in the latter half of 2017.  Perhaps a comparable number since then, so I'd have thought that there'd be no difference between a year ago & now.

 

That said, your point is well-taken that if one anticipates needing a mortgage, one should stay on the wagon for at least a year beforehand.

2019 Goals: actually garden; save 3 months' net income; clear the BT cards
2020 Goal: Chase Freedom (Q2)

EQ8059 INQ (5 CC, 2 mort, phone, CU)
EX80610 INQ (6 CC, 2 HELoan, 2 mort)
TU8297 INQ (5 CC, 2 mort)
9/24 < 2% AAoA 6.25y | AoYA 1m | AoOA 20y
Take the myFICO Fitness Challenge [ Last INQ 7-Jan-2019 ]
I can garden. Yes, I can. I guess..
Message 3 of 6
Moderator Emeritus

Re: older Mortgage/Bankcard/Auto scores & Credit Seeking


@expatCanuck wrote:

Hmmm.  Excellent data point.  Still, most of my INQs were in the latter half of 2017.  Perhaps a comparable number since then, so I'd have thought that there'd be no difference between a year ago & now.

 

That said, your point is well-taken that if one anticipates needing a mortgage, one should stay on the wagon for at least a year beforehand.


There's not that many breakpoints for inquiries at least on EQ FICO 5, maybe only 3 of them actually: somewhere between 0/1, 3 for me, and there's one more I think higher at like 7/8... so depending how it works out you might not see that much score difference between them.

 

But when even on a dirty file (tax liens) I could take a 7 point swing, well, anyone who's looked at a mortgage rate sheet knows a 700 is way better than a 693 for many products: fortunately EQ was my low score and I cleared 720 on TU/EX but it really drove home the point of staying uber clean if one needs a mortgage.

 

I might have that again if I get stuck moving to SF for my job and I have a new account and 2 inquiries depressing my score: might be only a tiny condo in Oakland in terms of housing, but it's still a mortgage and California is still expensive compared to most of the states.  I really hope I don't have to do that just sayin' though I guess portfolioing real estate isn't a bad plan financially but California real estate is already kinda topped out currently and unless my TU FICO 4 with a 60D late on it somehow is above 740, I'm sitting at a 720 tier as a result.

 

Maybe I can stretch the move out to April or May and this goes away at 1 year:

 

1. You recently missed a payment or had a derogatory

indicator reported on your credit report.

 

Think one could rationally say I know my credit scores too well =/.




        
Message 4 of 6
Valued Contributor

Re: older Mortgage/Bankcard/Auto scores & Credit Seeking


@Revelate wrote:
...Think one could rationally say I know my credit scores too well =/.

On that score, I think you're in good company on this forum.  I've been looking forward to the first couple of months of 2019, when my rap sheet was finally expunged.

2019 Goals: actually garden; save 3 months' net income; clear the BT cards
2020 Goal: Chase Freedom (Q2)

EQ8059 INQ (5 CC, 2 mort, phone, CU)
EX80610 INQ (6 CC, 2 HELoan, 2 mort)
TU8297 INQ (5 CC, 2 mort)
9/24 < 2% AAoA 6.25y | AoYA 1m | AoOA 20y
Take the myFICO Fitness Challenge [ Last INQ 7-Jan-2019 ]
I can garden. Yes, I can. I guess..
Message 5 of 6
Community Leader
Super Contributor

Re: older Mortgage/Bankcard/Auto scores & Credit Seeking

Did I understand you rightly in your initial post -- that you went from a profile with lates to a completely clean profile, and you made no improvement in your mortage score?  (And this is with your CC utilization going down a bit?)

Message 6 of 6