in 11/02 I re-fied for 5.275%. My mortgage company offers a streamlined re-fi in this package if the rate goes down. I can now refi for 4.25%. The problem is my fico was in good shape in november. Now the March report shows a sudden drop of about 70 points. 11/02 Beacon 656, Empirica 667, FICO 606 3/03 Beacon 582, Empirica 532, FICO 557 The mortgage company could not explain the sudden drop because the reports are almost the exact same. They sent me the reports to explain the differences???? **Old mortgage paid off. New mortgage is $4000 more. **New collection account for $70 from Time Warner Cable. Disputed. **All other balances were reduced as expected. **first report showed a duplicate of same credit card with total balances of $9000. March report shows one credit card not two with appropriate balance of $13000. **new report shows an old credit card with an unpaid balance of $3.00 and it show late. I can repair this one easily with phone call. Company has been good at repairing their mistakes and there have been lots of them. Are these significant enough to cause a 70 point drop? Is there anything I can do to get the 4.25 rate before my 4.25% mortgage lock runs out?
What is causing your loss of points is the 1)new collection acct. 2) Your cc balance increased by $4000. Large revolving debt is a score killer. Pay this down to below 50% of the limit and you will see a large increase in score. 3) the $3 late pay is also a score killer. Even thought it is a small amount, it is the late notation that kills scores. If you can get rid of that, do it.
actually, he said the $4,000 is for the mortgage which shouldn't be revolving right? But I agree with you. The recent collection and late are killing your score. Yes, they may be more than enough....
Actually, new lates are known to cost about 60-70points, even a new 30 day late payment can do that (not to mention a new collection). The effects start to decrease as time goes on, but if you can take care of this with the OC, you'll get your points back
Re: Re: sudden drop in fico Actually, he also said he had two credit card balances which totalled $9000 and now shows balance of $13,000, an increase of $4,000.
Thanks for all your input. I filed complaint with BBB on Time Warner Cable and CC company removed the $3.00. I paid off $6000 on the credit cards. We'll see what happens.
