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FICO for new home loan came in very low


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I have no cc debt and no missed/late payments ever. The only accounts on my CR are my car, home mortgage, and 3 cc accounts ($60,000 total avail credit, 0% used). I bought a house 2 years ago and my FICO was 770. I check directly with the 3 bureaus on occasion and my FICO is 750+. Today I submitted a mortgage refi application to my credit union and they came back and told me my FICO came back as 650. The interest rate was a bit high. What gives? Why would the FICO be so low now? I've never came back lower than a 720 at any time in my life. If nothing has changed on my reports why would it be so low now?

Edited by DLasVegas
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When is the last time you looked at your credit reports?  

 

I'm not talking about logging into Kredit Carma, I mean actual credit reports.

 

Also, as national treasure @mizliz1011 :wave: notes, if you haven't been looking at FICO scores (in this specific case, mortgage FICO scores), you haven't had a useful reference point.  

 

Note that Equifax and TransUnion mainly sell Vantage or proprietary scores when you buy products directly from them.  Just because TU sells you a score doesn't mean it's worth anything.  Look at all of the worthless garbage on the shelves at your local Walmart.

 

Separately, if all three of your cards are reporting $0 balance, that's a negative.  Optimally, you should have exactly one card reporting a very small balance ($2-3).

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1 hour ago, DLasVegas said:

I have no cc debt and no missed/late payments ever. The only accounts on my CR are my car, home mortgage, and 3 cc accounts ($60,000 total avail credit, 0% used). I bought a house 2 years ago and my FICO was 770. I check directly with the 3 bureaus on occasion and my FICO is 750+. Today I submitted a mortgage refi application to my credit union and they came back and told me my FICO came back as 650. The interest rate was a bit high. What gives? Why would the FICO be so low now? I've never came back lower than a 720 at any time in my life. If nothing has changed on my reports why would it be so low now?

There is no way your mortgage FICO was 650 based on what you report re your credit file. 650 is consistent with one or more negatives like collection accounts showing. However, mortgage scores are very sensitive (on the downside) to all your CCs reporting a zero balance (see @cv91915or all your CCs reporting any balance., so make sure that doesn't happen. Best if only 1 reports a small balance. Get a copy of your report from the CU or pull all your reports and find out which one(s) they pulled from.

Edited by cashnocredit
add all reports reporting a balance
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Are you sure there aren't any collection accounts that you may have missed or that you were originally looking at FICO as the other poster suggested? Also note there are multiple iterations of your FICO score. If you did receive a FICO score, which one were you looking at? Most lenders use an older FICO score.  For home purchases and refinances they typically pull all three and use:


Experian: FICO 2
Equifax FICO 5 (a/k/a Equifax Beacon 5.0)
Transunion: FICO 4

Edited by CreditCurious20
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