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go2emusic

Credit score dropped 30 pts after a Mortgage Refi. Why??

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Hi,

I was utterly shocked when I discovered my credit scores dropped almost 30 pts after a Home Mortgage Refi.

 

Why did this happen?

I use CreditKarma, and they show TransUnion and Equifax scores. Both showed around 30 pts drop after my Refi completed....

Any information is most appreciated.

 

Thanks & Rgds.

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Typically you shouldn't see a substantial drop in your score due to a mortgage refi. Yes, there is a new account with a balance (and an effect on age of credit factor), and there was an inquiry (though that may have happened the previous reporting cycle) but overall the effect is usually small. Have you confirmed your old mortgage is showing a zero balance? If there was a lag in reporting that, your debt level could look higher than it is.

 

I wouldn't panic. Unless there is something else going on, my guess is you will see it even out next reporting cycle or the following.

 

Also double check other factors like utilization which is often responsible for swings like that.

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If you dont get many responses I would also ask the question in the credit repair forum - they are the gurus at why the scores move around

It is real hard to say - it may be just the chaos of having a new mortgage while the old one is still reporting?

Check to make sure there isnt something else ??

 

B

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Thanks for the responses.

I'll try and cross-post in the credit repair forum. Hopefully the moderators don't mind.

 

Initially, I googled it and it seems I am not the only one who had a significant drop. However, the responses I saw didn't make much sense so I am trying the forums and see if the experts might know. As Gerri pointed out, it may just even out over a couple of month.

 

But, should I just call the individual credit agencies directly, and seek their input? (Is this even permitted?)

 

 

If you dont get many responses I would also ask the question in the credit repair forum - they are the gurus at why the scores move around

It is real hard to say - it may be just the chaos of having a new mortgage while the old one is still reporting?

Check to make sure there isnt something else ??

 

B

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Credit Karma doesn’t give you FICO scores. They give you your Vantage Score, which to my knowledge, no one uses. These are often referred to as FAKOs.

 

There is no correlation between this score and your real FICO score. This month my EQ FICO score went up 20 points and credit karma went down 100.

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