tarbaby Posted April 21, 2008 Report Share Posted April 21, 2008 your fico jumps up after paying off a mortgage? my bf sold his house..closed last weds. That paid off his mortgage and equity line. All 3 cra's are reporting as paid..however not jump in his score..not even one point..so how long before his score should increase?? Link to comment Share on other sites More sharing options...
Ahntara Posted April 21, 2008 Report Share Posted April 21, 2008 His score may not increase.While paying off installment loans does indicate a change in your BF's debt profile, it's not necessarily a factor that FICO-based programs see as worthy of additions. In fact, if he doesn't follow up with another mortgage, he may see a decrease because FICO likes mortgage loans and address stability. Link to comment Share on other sites More sharing options...
CRAIGER7204 Posted April 22, 2008 Report Share Posted April 22, 2008 Ive actually heard that Paying off an installment type loan should help your score go up. where as if you pay off a credit card in full, it will not help much at all (assuming it wasnt above 38% usage)since you still have the line of credit and therefore the ability to run up your balance again. Whereas with an installment loan, once its paid off, its closed. Link to comment Share on other sites More sharing options...
willingtocope Posted April 22, 2008 Report Share Posted April 22, 2008 The real question is...which score. The FICO CC sucker score (which is the closet to the one you get to see) doesn't care much about mortgages one way or the other. The FICO mortgage score (which you can't see without applying for a mortgage) probably jumped.Note that "utilization" is a "good" thing only on the sucker score...the mortgage score is happiest when there are no other outstanding debts. Link to comment Share on other sites More sharing options...
smurfette in nyc Posted April 22, 2008 Report Share Posted April 22, 2008 The real question is...which score. The FICO CC sucker score (which is the closet to the one you get to see) doesn't care much about mortgages one way or the other. The FICO mortgage score (which you can't see without applying for a mortgage) probably jumped.Wow willingtocope, you are fast becoming my new hero! I never knew before reading your post that there was yet another FICO score!Do you know how closely correlated the FICO CC and FICO mortgage score are? I guess I would really like to know how similar, or different, those scores can be from one another?? Link to comment Share on other sites More sharing options...
jq26 Posted April 22, 2008 Report Share Posted April 22, 2008 My monthly FICO provided by Providian is a FICO credit card score (it tells you in the fine print). The tri-merge mortgage TU FICO that was pulled back in March of 2007 was within one point of my credit card score. It could have been by chance. As far as closing installment loans, FICO likes installment credit. It adds to the "mix of credit" component. With student loans quickly accruing and a year old mortgage, my FICO scores have never been better.I'm not so sure that the score will rise. Link to comment Share on other sites More sharing options...
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