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Credit score maddness


Chinitnabaybob
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Well I have had a credit card for 1 full year now US bank platinum (12 month 0% apr) $1000 cl , increased on its own to $2000 a few weeks ago not showing at CRA,s yet. Got my 2nd card in Aug 2021 amex blue cash everyday (15 month 0% apr) $10,000 cl. Already received the $250 bonus + cash back of around $100.

 

Had the expected fico 8 drop from the new amex card inquiry  749 down to  730.

Score went back up 730 to 750 the only change was reported balance $0 to $4 on the US bank card.

Next I  ran the reported balance on amex from $0 up to $2311 score 750 to 707 .

Paid down reported amex balance to $1983 score 707 to 708 .

Paid down reported amex balance to $799 score 708 to 725 .

Score 725 to 731 don't have a clue.

Paid down reported amex balance to $0 score 731 to 718. WTH

 

Other than age of credit nothing else changed during this time and I kept the reported balance on the US bank card at $0 except the reported $4 mentioned above.

 

I am going to let $2 report on the US bank card with the amex at $0 and see what happens. Then I will switch the balances on the cards the next cycle to see what happens.

 

Some of this just makes no sense.

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You don't indicate if you are getting your score from a single source or not, which is a key piece of the puzzle.  And without knowing WHERE the score is coming from, it may not even be taking into account all of the changes you report.  Scores, even on a Fair Isaac model, offered by banks are often six to eight weeks behind the curve. 

 

Add in that you are seeking to apply reason to a thin file, which is something that tends not to produce the best results.  If ALL you have are two accounts, then there is nowhere near enough data to allow scores to consistently be produced in a manner that makes sense.  Two accounts makes it a challenge to subscribe to an AZEO plan. 

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Yes all scores from 1 source, experian fico 8.

All the reported changes seen on my credit report at experian are accurate and complete to what I have actually done.

 

The 20 point increase from reporting $4 on 1 card and $0 on the other , then a 13 point decrease from reporting $0 on both cards makes no sense unless it is because of the AZEO $2 hack I have read about. and what I have read indicates it has a greater effect on thin clean files so that is why I am going to see what happens when I leave $2 on 1 card.

 

I am currently avoiding the hit to my score from getting anymore cards and trying to get my score up as I am looking to get a ridiculously low VA mortgage rate at penfed before rates climb as it looks like the fed is going to raise rates this year plus I want to get the proceeds from a house I sold in Sept back into real estate. I need a new house and real estate is safer than banks.

 

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8 minutes ago, Chinitnabaybob said:

Yes all scores from 1 source, experian fico 8.

All the reported changes seen on my credit report at experian are accurate and complete to what I have actually done.

 

The 20 point increase from reporting $4 on 1 card and $0 on the other , then a 13 point decrease from reporting $0 on both cards makes no sense unless it is because of the AZEO $2 hack I have read about. and what I have read indicates it has a greater effect on thin clean files so that is why I am going to see what happens when I leave $2 on 1 card.

 

I am currently avoiding the hit to my score from getting anymore cards and trying to get my score up as I am looking to get a ridiculously low VA mortgage rate at penfed before rates climb as it looks like the fed is going to raise rates this year plus I want to get the proceeds from a house I sold in Sept back into real estate. I need a new house and real estate is safer than banks.

 

A report that has no balances is not going to score well.  This has been proven.  And yes, there are also some products that don't count in that fashion, which I detailed in a thread a few months back where I looked at all zero except my Plat card. 

 

If you are concerned about a mortgage, I would HIGHLY recommend that you invest in getting your mortgage-based Fair Isaac scores.  I suspect your anorexic file is going to give a score very different from what you are trying to micromanage right now...and not in a pleasant way.

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Posted (edited)

Centex thanks for all the info. It seems which fico model penfed uses is a secret that will not be revealed. I have asked a number of penfed mortgage customer service reps without getting an answer and I have searched on line without success so far. I dont even know if the model they use would be available to me if I knew which model to look for/ or pay to see. Not knowing what score they use and what interest rate range I will be paying until I am under contract strikes me as putting the cart before the horse. Or buying a mystery box only finding out what you get after shelling out the money.(I do understand rates change from day to day)

This seems to be like playing a game without access to the rule book for clarification.

 I will keep searching until I am satisfied or I will get frustrated and just pay cash as I have most of my life.

However I sure would like to use a mortgage to buy a house with cheap dollars.

Anyway I will keep playing around with the credit cards to my advantage and see what my fico 8 score does.

 

Edited to add.

I spent a few hours searching and reading today and so far this is the best info I could find.

https://www.experian.com/blogs/ask-experian/which-credit-scores-do-mortgage-lenders-use/

Edited by Chinitnabaybob
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  • 2 weeks later...
29 minutes ago, Chinitnabaybob said:

Update .  leaving $2 on 1 of my cards (usbank visa) instead of $0 on both of my cards bumped my experian fico 8 to 734 for a 16 point boost

.The only other difference is the CLI from $1000 to $2000 on the  usbank visa is now showing .

what are your mortgage FICO scores?

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31 minutes ago, Chinitnabaybob said:

Don't know yet I will be checking in the next 60 days , I'm waiting to pay the money to see until just before I'm ready to get preapproved at penfed.

If you were serious about mortgage approval, you would not be waiting until just before the application.  You are very likely going to see a shocking difference between FICO8 and the mortgage models and if you don't take steps NOW to be aware of it, you likely won't get the terms you hope for on a mortgage.

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1 hour ago, Chinitnabaybob said:

Don't know yet I will be checking in the next 60 days , I'm waiting to pay the money to see until just before I'm ready to get preapproved at penfed.

you can buy the myfico package which will show you three different mortgage scores...

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1 hour ago, centex said:

If you were serious about mortgage approval, you would not be waiting until just before the application.  You are very likely going to see a shocking difference between FICO8 and the mortgage models and if you don't take steps NOW to be aware of it, you likely won't get the terms you hope for on a mortgage.

 The pre approval at penfed is only good for 90 days then you have to start the clock again with another hard pull and I will not be ready for at least 60 days to start inspecting properties as I had to come out to AZ to finish up some business and I am looking to buy back in TX. 

 With the thin file I have (oldest account 13 months and AAOA 9 months) I dont know what I can do to improve my score other than just add time. I don't believe I will have a problem getting approved for a mortgage as I qualify for VA backing  with no lenders fees and 0 down if my credit score is good enough for the lender (I will be putting between 100-200,000 down).

 If in the end I don't get a rate and terms I am happy with I will just pay cash and or build my own place as in the past but with rates so low I would prefer to pay over time with cheap dollars.

 Any suggestions on raising my scores would be appreciated.

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37 minutes ago, Chinitnabaybob said:

 The pre approval at penfed is only good for 90 days then you have to start the clock again with another hard pull and I will not be ready for at least 60 days to start inspecting properties as I had to come out to AZ to finish up some business and I am looking to buy back in TX. 

 With the thin file I have (oldest account 13 months and AAOA 9 months) I dont know what I can do to improve my score other than just add time. I don't believe I will have a problem getting approved for a mortgage as I qualify for VA backing  with no lenders fees and 0 down if my credit score is good enough for the lender (I will be putting between 100-200,000 down).

 If in the end I don't get a rate and terms I am happy with I will just pay cash and or build my own place as in the past but with rates so low I would prefer to pay over time with cheap dollars.

 Any suggestions on raising my scores would be appreciated.

???? why not find out your mortgage FICOs with a soft pull at myfico????? makes no sense to wait and strategize to improve your mortgage FICO score when you have no idea what it is right now.

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1 hour ago, centex said:

If you were serious about mortgage approval, you would not be waiting until just before the application.  You are very likely going to see a shocking difference between FICO8 and the mortgage models and if you don't take steps NOW to be aware of it, you likely won't get the terms you hope for on a mortgage.

 

@Chinitnabaybob :  Please take this suggestion to heart.  At minimum, you want to purchase your myFICO scores today, and again when you're ready to pull a trigger on the app.

 

We're close to closing with DCU.  To qualify for their best rate, the middle mortgage score for each of us must equal or exceed 740.

 

Our FICO 8 scores run 820-845, so no problem right?  When I first checked our mortgage scores 3 months ago, our mortgage scores were in the range of 720-760.  We were a tad shy of the 740 cutoff.

 

If you contemplate any action to boost your scores before you apply, you need to have the right score targeted.  It goes without saying that your FICO 8's give you nothing substantive by which to determine where you stand when it comes to potential mortgage rate.

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Thanks for the responses I'm still learning. 

The only reason I can come up with to spend the money to see my mortgage scores is to make sure there are no mistakes causing a lower score. I'll get on that.

 With my thin file the normal paths to a higher score (more lines of credit )will just lower them with hard pulls in the short run. and longer AAOA takes time and I don't want to wait.

 My timeline is I will either buy or build a home in the next 2-8 months and with what I am seeing that's left for sale out there I am leaning toward building . I am only looking at mortgages because rates are the lowest in my lifetime and make financial sense. If I cant get a mortgage or a rate that makes sense I will go the cash route.

 

If there is something I am missing other than the $2 reporting on 1 card thing that will raise my scores in the next 2 months let me know.

 

 

 

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5 hours ago, Chinitnabaybob said:

The only reason I can come up with to spend the money to see my mortgage scores is to make sure there are no mistakes causing a lower score. I'll get on that.

 

I'll suggest you've likely attained this much through the FICO 8 score and the review of your credit reports.  Your mortgage scores won't reveal much more on this count.

 

That said, your currently have no idea what your mortgage FICO scores are, or what you middle score is that will be the basis from which your mortgage rate will be determined.  While your FICO is running in the vicinity of 730, you can't currently pin your mortgage score more accurately than to say it's likely somewhere in the range of 650-800.  That suggests a 30-year rate ranging from 3% to 4.5%.

 

Purchasing your scores now for a one time fee of approx $50-$60 will allow you to hone in on a more accurate rate expectation.  The score analysis you receive will give you a good clue as to whether there's anything in your report that might be finer tuned to boost your mortgage scores.

 

A middle FICO mortgage score of 740+ will generally get you the best 30-year rate of 3% at present. 

 

Whether there's any improvement to be had between now and you're ready to pull the trigger on an app, in your shoes I would at least pull another set of scores right before you apply so again you have a firm idea of where you sit.

 

That's just a suggestion; you know best what suits your needs.

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You can get your FICO mortgage score for free at Experian's CreditWorks.

 

Sign up for a free trial and they give you a 3-bureau report. For TU and EQ, they only give you your FICO Score * (or maybe it's 9, I don't remember and am too lazy to go check). For EX, they give you about 6 different FICO Scores.

 

You can afford free, right?

 

IME, your mortgage score is always going to be lower than your 8 or 9.

 

 

Sent from my iPad using Tapatalk

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39 minutes ago, centex said:

Never ceases to amaze me when people who are going to make perhaps the biggest expenditure of their life allow a nickel to hold up a dollar.  Or who want to be reactive instead of proactive. 

I was curious about the concern for spending $60 to see real mortgage scores. Makes me assume the OP is not ready to bear the costs of ownership (which go way beyond paying a monthly mortgage + impound).

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I've had more than a couple of "skin flint" friends who closely question any purchase in excess of $5.  I have respect for them (even if I question their sensibilities to a degree).  Consequently, I never am put off by the question of "Why would I buy this?" provided they're open to reason.

 

If you want to know your mortgage rate prospects, you have to choke up a fee (you need all 3 scores ... 1 will only ball park, but can be very misleading).  And if there's a potential inaccuracy with any of your 3 reports that impacts your scores, you want to flag that as early on as possible.

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