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My dh score is 715 and with a 720 we get a .25 lower rate on a refi.
We carry no balance on any cc's. We do have a car loan that has 1 yr left that we can pay off if we need to. Should we close some accounts?
Also we just sold our prior home but it is probably still in the report. Would this affect the score? If it does how long till it is removed? TIA
Frankly I'm surprised that a bank would quibble over 5 pts on a FICO. In fact, I'm somewhat skeptical that a bank really put all that much stock into a FICO score...at least as much as the FICO-folks would have us believe. It is fairly easy for a bank to get a good idea of a person finances right from their mortgage app.
Couple of things to look at here.
1- yes 5 points make a difference, heck if your off by the wrong 1 point it could make a difference (719-720).
2- even if you pay off credit cards each month they will still report a balance if used. For example your bill is due on the 20th of the month for $500 with a $600 limit, when they report to the bureaus say on the 1st it looks like you are almost maxed out. reported balance has nothing to do with due and billable charges.
3- As far as a your prior home, your LO should do what we call a credit supplement which would update this to a $0 balance, though I don't think is going to make a big difference.
Couple of things to look at here.
1- yes 5 points make a difference, heck if your off by the wrong 1 point it could make a difference (719-720).
Do you have a specific example of this? Logically speaking, I can't believe with FICO scores ranging between 300 and 850 that 1 point (or 5 or 10 points for that matter) could make any difference at all in a decision by a lender.
Do you have a specific example of this? Logically speaking, I can't believe with FICO scores ranging between 300 and 850 that 1 point (or 5 or 10 points for that matter) could make any difference at all in a decision by a lender.
The OP's lending institution has determined that 720 is a "good" score. So, anything under that does not qualify for the best rate. Each instituation will determine what is good for them.
The OP's lending institution has determined that 720 is a "good" score. So, anything under that does not qualify for the best rate. Each instituation will determine what is good for them.
Yep. They have a computer program where they put in my numbers and the number they get from the credit bureau. I am sure that if the number is 719 they would get the same result. I have made a request for a manual evaluation of the application. I am awaiting their call any minute.
I think FICO being such a big part is ridiculous. We have owned 5 different houses and between refinancing and 2nd mortgages we have had a total of 11 different mortgages and never a late payment. The only negative thing in the report is a cc fee a department store charged us 6 years ago and we didn't agree with. We paid off the balance minus the fee at the time and here it still is causing us problems. We disputed it on the report and the only thing they did was ask them if we owed it and they said yes and it stayed. Lesson learned never use a store card because the banks they use are sleazy. Also that particular store has lost our business because they wouldn't even speak with us because they say they are completely independent from the card. We got the card in their store and it has their name.
Just an update. They will not budge so we are taking our business elsewhere.
We can get the rate we want elsewhere. We will also move our checking account to a different bank.
My dh score is 715 and with a 720 we get a .25 lower rate on a refi.
We carry no balance on any cc's. We do have a car loan that has 1 yr left that we can pay off if we need to. Should we close some accounts?
Also we just sold our prior home but it is probably still in the report. Would this affect the score? If it does how long till it is removed? TIA
If this is true how come you only has 715 in Credit Score. I had 750 and a lot more CC debt, loans and car loans then that so that' s why Im asking?
6 years ago we bought a big screen TV from Best Buy. We applied and received a store card so we could delay payments. One month we didn't get the statement and by the time we realized it our payment was late. A late fee was charged. We called them and they wouldn't take it off. We paid the balance on the card minus the fee and closed the account. Eventually they stop sending us the bill so we forgot all about it. 3 years ago when we moved and got new car insurance we learned it was on his credit. It showed as a charged off account of $240. We tried to dispute it with the credit bureaus. They just contacted the card company and they said we owed the money. So the item stayed. We tried to get someone in Best Buy to help us resolved this. They just said they had nothing to do with the card.
Since we had just purchased a home without any issues we again let go of the issue. It did cost us about $30-$50 in a higher car insurance premium. But at that point our time was worth more than the money and we looked at it as a cheap lesson on store cards. Never again.
It will fall of the credit report this year. I still think is ridiculous that a $240 charge off can have such a large impact. We do have assets which makes very low risk.
At the time the report was pulled there were 2 mortgages listed so that may have lower it as "too much debt". I am sure in a month or so the score will be higher.
We paid the balance on the card minus the fee and closed the account..
If you paid off the account then how come they still bill you? I am missing something?
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