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""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

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Valued Member

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

SoutJamaica - Agree that most of the changes were "odd".

The PLUS loan balance certainly could be a factor - but it was simply a balance increase and not a new accouhnt - and in the case of EquiFax it was there also and the EquiFax mortgage score still went up 3 points over that 9 days.  A 36-point drop in Experian mortage score is just hard to stomach based on what is in the credit report.

Message 11 of 31
Super Contributor

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

What strikes me as significant is that the #1 negative reason statement that the OP references on October 7 is "You have too many credit cards and/or open-ended accounts carrying balances" where that reason statement isn't even present in September.  I would think this has a lot to do with it, as we all know that the mortgage models are more sensitive to number of accounts with balances.  Maybe the OP crossed some sort of threshold with respect to number of accounts with balances (maybe that new loan showing up) that shot that negative reason statement to the top of the list?  I would say a simple test here would be to bring 1-2 accounts with [small] balances down to $0 reported balances and assuming that's equal to or lesser than your total number of accounts with balances from your September reference point you may see that negative reason statement go away.  Possibly those points would return at that time.

Message 12 of 31
Highlighted
Valued Member

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

 Brutal - The accounts showing non-zero balances are exactly the same on the Sept. 27 and the Oct. 8 credit reports for all 3 bureaus - and the balances for all accounts (with exception of student loan noted below) decreased slightly.

 

Just to clarify, there was not a "new loan" that showed up - only an increase in the balance of an existing student loan.

 

 

Message 13 of 31
Valued Member

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

I just jumped online and paid off 3 credit cards.

 

Do I need to wait until the normal cycle of the credit card companies reposts the zero balance?

 

Can I request that Experian contact the credit companies to update the balances via a "Dispute" or other means?

 

If I overpay a card and have a "credit", is that counted as a "balance" that will hurt my score? (sorry, that may be a dumb question but let's remember we're talking FICO Score 2 here and very little is transparent).

 

Message 14 of 31
Senior Contributor

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

An over payment reports as a zero balance.

 

You can contact CC companies and request them to send an uodate to the CRAs showing the new balance. Some CC companies will automatically report a mid cycle balance of zero but, many donot.

Fico 8: .......EQ 850 TU 850 EX 850
Fico 9: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
VS 3.0:...... EQ 835 TU 835 EX 835
Fico 8 BC:. EQ 892 TU 900 EX 900
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 15 of 31
Super Contributor

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores


@Cruzzer1

Do I need to wait until the normal cycle of the credit card companies reposts the zero balance?

 

Can I request that Experian contact the credit companies to update the balances via a "Dispute" or other means?

 

 


Yes, you'll likely need to wait.  You would not call a CRA and ask them to contact the creditors; if you want to call the creditors yourself you can and you would be requesting an immediate "off cycle reporting" of your current balance.  Many are good at doing this such as Discover and Amex.  Others like Wells Fargo won't do it under any circumstances and will flat out tell you no.  Many CCCs have been reported on this forum as giving mixed results... as in one CSR will tell you they won't/can't do it, but if you call back and get a different CSR they'll say they can.  I would highly advise against a "dispute" for a balance update as an attempt to achieve an off cycle reporting. 

Message 16 of 31
Moderator Emeritus

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

Where are you getting these from?

 

You won't get more than 4 in the myFICO interface or any other to my knowledge except fake ones as only 4 at most come back from the bureau on the pull, especially true here for EX FICO 2 like mine are:

 

  • 1. You've made heavy use of your available revolving credit. 
  • 2. You have missed payments or derogatory indicators on your credit accounts. 
  • 3. You recently missed a payment or had a derogatory indicator reported on your credit report. 
  • 4. The balances on your non-mortgage credit accounts are too high.



        
Message 17 of 31
New Member

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

The entire Credit reporting industry is a scam. They want you to pay a monthly subscription fee for Scores  that are totally usless. 

I have been told many times by the 3 major companies, Equifax, TransUnion and Eperian that the scores given to you are just a guide and that the lender creats the score by using their own formula. If they keep the scores low then you pay higher interest. Industry wins !

If you take the info you get as gospel you feel confident you're getting an acurate report. You go apply for a credit card, or auto loan only to be turned down because the lender says your scores do not meet their requirements. You get screwed again because you now have another inquiry on your report and bang your score goes down ! Had you known your true lenders score you may have decided to not even apply, but you did! Too bad ! And they WIN !

        We all know that the rich don't need credit but they use it for various financial reasons, but the low income guy,  the middle income guy, the regular shmoe gets raked over the coals paying 30% and more on your credit cards. I don't really know this but I wouldn't be shocked if the Credit Reporting Agencies are getting a kick back from the lenders,(only speculation mind you!).

        Changing federal banking laws can make this fair but the bankers and credit card companies and reporting agencies are making too much money to ever let this happen. 

        If all this tweeks you then google class action law suits against Credit Reporting Agencies ! This could surprise you. I am an independent law biding regular Joe just like most of you . I am also a participent in a class action law suite being brought against these firms. You may want to check it out yourselves. Thanks for your ear !  

Message 18 of 31
Super Contributor

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores


@genemat712 wrote:

The entire Credit reporting industry is a scam.  


Oh dear, not another one of these replies.

 

You're going to have to become much more open-minded if you want to understand credit and the purpose of this forum.  If the entire industry was a scam, there would be absolutely no purpose of this forum.

Message 19 of 31
New Member

Re: ""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

What % of lemmings don't jump ?
Message 20 of 31
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