Is that crazy??? I was wondering if anyone went down this route?? I'm under the impression, adding a mortgage loan is a big boost to the FICO, true?? I'd have to find the smallest of the smallest properties/mortage loans to do. I dont know how I'd even get approved. But I was looking at my Transunion score today (only 661) and I thought that might help it. Was wondering if anyone knew how to maybe get like a loan in the range of 1K -10K mortage loan somewhere just for the sake of improving their FICO?? I'm in California so buying a home is out of the question. I also would like to avoid another inquiry. Thinking like maybe buy a tiny part of a piece of land or something?? AFter going on a credit card opening spree about a 15 months ago, I finally was able to raise my experian FICO8 pretty fast from a low score to 698 but it seems like I cant seem to get my Transunion much higher until I get under 30% utilizaton. I got around $54K in CC debt, 13K in two personal loans (they are around 65% paid off), plus 65K in student loans (I'm on a plan to get them written off but gonna take years). Aggregate utilization is around 41% right now. Good news is I have over $130K total credit card funds. But its prob gonna take me another 6-12 months to get at 29%. Reason for all of this is I have some balance transfer cards that's 0% offers are about to expire. I've been paying off a massive debt past three years. Making good progress but it's just slow. So I prob need at least 1-2 new low interest balance transfer cards for this last stretch. Thoughts?
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Open up small mortgage loan to improve FICO??

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2 months ago
Thu Apr 18, 2024 3:19 am
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NoMoneyNoHoney
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Is that crazy???

I was wondering if anyone went down this route?? I'm under the impression, adding a mortgage loan is a big boost to the FICO, true??

I'd have to find the smallest of the smallest properties/mortage loans to do. I dont know how I'd even get approved.

But I was looking at my Transunion score today (only 661) and I thought that might help it. Was wondering if anyone knew how to maybe get like a loan in the range of 1K -10K mortage loan somewhere just for the sake of improving their FICO?? I'm in California so buying a home is out of the question. I also would like to avoid another inquiry. Thinking like maybe buy a tiny part of a piece of land or something??

AFter going on a credit card opening spree about a 15 months ago, I finally was able to raise my experian FICO8 pretty fast from a low score to 698 but it seems like I cant seem to get my Transunion much higher until I get under 30% utilizaton. I got around $54K in CC debt, 13K in two personal loans (they are around 65% paid off), plus 65K in student loans (I'm on a plan to get them written off but gonna take years). Aggregate utilization is around 41% right now. Good news is I have over $130K total credit card funds. But its prob gonna take me another 6-12 months to get at 29%.

Reason for all of this is I have some balance transfer cards that's 0% offers are about to expire. I've been paying off a massive debt past three years. Making good progress but it's just slow. So I prob need at least 1-2 new low interest balance transfer cards for this last stretch.

Thoughts?
NoMoneyNoHoney
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  • Score data EX FICO8: 698 TU FICO8: 708 EQ: 731
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Re: Open up small mortgage loan to improve FICO??

2 of 5
2 months ago
Thu Apr 18, 2024 10:50 am
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Slabenstein
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This wouldn't be worth doing. My FICO's didn't change at all when my mortgage reported; to my knowledge, mortgages aren't scored differently from other installments.

Maybe more importantly, the only mortgage product that would be available in the dollar range you're talking about would be a home equity loan. But for a home equity loan you have to already own property with equity to put up as collateral, and they report differently than first mortgages, anyway.
Slabenstein
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Re: Open up small mortgage loan to improve FICO??

3 of 5
2 months ago
Thu Apr 18, 2024 1:55 pm
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Dinosaur
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Slabenstein wrote: Thu Apr 18, 2024 10:50 am This wouldn't be worth doing. My FICO's didn't change at all when my mortgage reported; to my knowledge, mortgages aren't scored differently from other installments. Maybe more importantly, the only mortgage product that would be available in the dollar range you're talking about would be a home equity loan. But for a home equity loan you have to already own property with equity to put up as collateral, and they report differently than first mortgages, anyway.
Or a Home Equity Line of Credit that can be paid down and reused as needed for the life of the product. Generally, the life runs 5, 10, 15 or 20 years. Rate variable and usually pegged close to the Federal Reserve Rate. May appear in the credit bureaus as a mortgage or other. My HELOC appeared as other. Also, did not find huge effects when paid off the mortgages. Likely because I had an installment loan plus a Mortgage and HELOC. Do note however when I paid off the installment loan there was a significant score adjustment.
Dinosaur
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Re: Open up small mortgage loan to improve FICO??

4 of 5
2 months ago
Sun Apr 21, 2024 1:28 pm
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NoMoneyNoHoney
Secured RebelNeed another Balance transfer card
Level8 Last INQSunday, October 1, 2023 Gardening For8 months, 18 days, 9 hours, and 45 minutes Next Level in11 days, 14 hours, and 15 minutes on July 1st INQ 1yr onTuesday, October 1, 2024 INQ 1yr in3 months, 11 days, 14 hours, and 15 minutes INQ 2yr onWednesday, October 1, 2025 INQ 2yr in1 year, 3 months, 11 days, 14 hours, and 15 minutes
Dinosaur wrote: Thu Apr 18, 2024 1:55 pm
Slabenstein wrote: Thu Apr 18, 2024 10:50 am This wouldn't be worth doing. My FICO's didn't change at all when my mortgage reported; to my knowledge, mortgages aren't scored differently from other installments. Maybe more importantly, the only mortgage product that would be available in the dollar range you're talking about would be a home equity loan. But for a home equity loan you have to already own property with equity to put up as collateral, and they report differently than first mortgages, anyway.
Or a Home Equity Line of Credit that can be paid down and reused as needed for the life of the product. Generally, the life runs 5, 10, 15 or 20 years. Rate variable and usually pegged close to the Federal Reserve Rate. May appear in the credit bureaus as a mortgage or other. My HELOC appeared as other. Also, did not find huge effects when paid off the mortgages. Likely because I had an installment loan plus a Mortgage and HELOC. Do note however when I paid off the installment loan there was a significant score adjustment.
Thanks. I do have two personal loans on file. What is the threshold where you need to get the balances to get a score increase?? For example, I've paid off around 60% of the loans, if I got to 70% would that be huge score increase? Is it the same as for credit cards? Where every time you get 10% paid off (say you go from 69% utilizaton to 59% utilization) you get a score increase?? I couldnt find much info on how the installment loans effect your credit score. The issue is my loans are only 5.9% interest rate. But I got over $54K of unsecured credit card debt. Most is under 0% offers right now but they are expiring soon, so I dont want to focus too much on the loans since the other debt could be extremely high interest once the special 0% balance transfer offers expire. I'm working on trying to get another balance transfer card. There's also some strategy with that since I have to very careful who I choose nexts since my FICO isnt that high (but not horrible either).
NoMoneyNoHoney
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  • Score data EX FICO8: 698 TU FICO8: 708 EQ: 731
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Re: Open up small mortgage loan to improve FICO??

5 of 5
2 months ago
Tue Apr 23, 2024 12:13 pm
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Slabenstein
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Slabenstein has passed the 12 month threshold!
No scorable inquiries on file!
Level21 Last INQThursday, September 1, 2022 Gardening For1 year, 9 months, 18 days, 9 hours, and 45 minutes Next Level in11 days, 14 hours, and 15 minutes on July 1st INQ 1yr onFriday, September 1, 2023 INQ 1yr reached9 months, 18 days, 9 hours, and 45 minutes ago INQ 2yr onSunday, September 1, 2024 INQ 2yr in2 months, 12 days, 14 hours, and 15 minutes Goal24 months Goal DateSunday, September 1, 2024 Goal In2 months, 12 days, 14 hours, and 15 minutes
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NoMoneyNoHoney wrote: Sun Apr 21, 2024 1:28 pm
Dinosaur wrote: Thu Apr 18, 2024 1:55 pm
Slabenstein wrote: Thu Apr 18, 2024 10:50 am This wouldn't be worth doing. My FICO's didn't change at all when my mortgage reported; to my knowledge, mortgages aren't scored differently from other installments. Maybe more importantly, the only mortgage product that would be available in the dollar range you're talking about would be a home equity loan. But for a home equity loan you have to already own property with equity to put up as collateral, and they report differently than first mortgages, anyway.
Or a Home Equity Line of Credit that can be paid down and reused as needed for the life of the product. Generally, the life runs 5, 10, 15 or 20 years. Rate variable and usually pegged close to the Federal Reserve Rate. May appear in the credit bureaus as a mortgage or other. My HELOC appeared as other. Also, did not find huge effects when paid off the mortgages. Likely because I had an installment loan plus a Mortgage and HELOC. Do note however when I paid off the installment loan there was a significant score adjustment.
Thanks. I do have two personal loans on file. What is the threshold where you need to get the balances to get a score increase?? For example, I've paid off around 60% of the loans, if I got to 70% would that be huge score increase? Is it the same as for credit cards? Where every time you get 10% paid off (say you go from 69% utilizaton to 59% utilization) you get a score increase?? I couldnt find much info on how the installment loans effect your credit score. The issue is my loans are only 5.9% interest rate. But I got over $54K of unsecured credit card debt. Most is under 0% offers right now but they are expiring soon, so I dont want to focus too much on the loans since the other debt could be extremely high interest once the special 0% balance transfer offers expire. I'm working on trying to get another balance transfer card. There's also some strategy with that since I have to very careful who I choose nexts since my FICO isnt that high (but not horrible either).
Thresholds for installment utilization aren't as well understood as those for revolving, I think partly because the point awards and penalties are so much lower and partly because installment utilization can't really be manipulated month-to-month for testing the way revolving can. To my knowledge, the only utilization scoring for installments is aggregate. According to Birdman's scoring primer, there's a known threshold at 9.5% agg util that gives largest points reward, and there may be smaller rewards at about 65% and 88%. For what to focus on paying off, I would choose finances over FICO and attack your highest-interest debt first while also looking to reduce your interest rate where you can. So new 0% BT if you can get it, debt consolidation loan on what's left if that will reduce your rate, and then pay down the balances that are costing you the most to carry as aggressively as you can.
Slabenstein
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  • Score data EX8 836, TU8 828, EQ8 837
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