Low credit score for cash out refi

[Saman Jafari]

Hey folks, I’m in the process of refinancing a couple of properties I have. However i made a mistake and opened a couple of credit account and it lowered the credit score drastically that the qualifying score is 703 because the avg age of credit cards reduced. Now I have to pay 3 points . Wanted to pick brains of folks who experienced the same situation and get some suggestions. Tia!

[Byron Valles]

Quote from @Saman Jafari:

Hey folks, I’m in the process of refinancing a couple of properties I have. However i made a mistake and opened a couple of credit account and it lowered the credit score drastically that the qualifying score is 703 because the avg age of credit cards reduced. Now I have to pay 3 points . Wanted to pick brains of folks who experienced the same situation and get some suggestions. Tia!

Hi Saman, 

This is interesting. Credit scores are calculated by different pieces of credit data in your credit report. The five categories and the "weight" each has on your score are as follows: 

Payment History: 35%

credit utilization: 30% 

Length of credit history: 15%

New Credit: 10% 

Credit Mix: 10% 

as you can see opening new credit cards would affect your length of credit history (15%) and new credit (10%). A hack I've used and helped others with to quickly increase your score is to lower your credit utilization (30%). You do this by increasing the credit amount available to you. The easiest way would be to request a line increase from your current credit issuers (if they do it with a soft-credit pull even better). 

hope this helps! 

Byron