Hey guys and gals, I asked this question yesterday. I was hoping it just got lost in the new layout. My question is how does a mortgage affect your FICO scores. Specifically, when does it show up on your credit reports. I bought a house on Dec. 28th. I checked all three reports last week and the mortgage was not there yet. My first payment was due on Feb 1st - yes I sent it in on time . Mike G.
Re: Mortgage affect on FICO-re Mike: I believe a mortgage helps your FICO score as long as the account is in good standing. I do know that is more heavily favored than renting by companies. Usually, it takes organizations 2 months to add new information to your credit reports. If nothing is showing by mid March I would contact the mortgage lender and ask them to please add the tradeline. Best of luck. Dani
Re: Mortgage affect on FICO-re I'm not an expert, but from what I know you have to wait some time(1-2 years) before the mortgage really becomes a strong asset to your credit report. I guess they want to see how you handle large mortgage payments over time. As for reporting, the info on CRA databases is at least one month obsolete. Sometimes it can be 2-3 months...
Re: Mortgage affect on FICO-re Initially, it *can* deflect your score - ANY brand new debt can affect it. But as time passes, the balance goes down, the on-time payments show up, and it swings the other way.
