All Forum Posts by: Jerry Bruckenheimer

Anyone who'd like to confirm for themselves that Fico utilizes open and closed accounts to calculate AAoA go here and purchase this product http://www.myfico.com/Products/FICO-Ultimate-3B/ You will be given an AAoA result along with your scores.

Then use this calculator to do your own verification http://seemly.com/aaoa-calculator/

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Originally posted by @David Dachtera:

Credit Question for anyone who wants to take it on...

How many Credit Scores do you have?

The only two that matter to lenders... Fico 04 and Fico 08. All other scores are wasted time and effort to contemplate. Other than outliers like Penfed that use NextGen or lenders that use auto-enhanced or bank card-enhanced the other variants are academia and trivial pursuit questions.

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Because the rent is due 😤

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arrgggh! painting wood floors! Please see (almost any) episode of Rehab Addict. Drum sander and poly can make these floors look amazing. Your floors aren't in bad shape at all.

Personally, I'd hire that out, leave the drum sanders to experienced operators.

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Yep, as mentioned, require tenants to establish utilities in their name rather than attempting any sort of transfer or sub-assignment of your accounts. You can contact the utilities and let them know your billing responsibility end date to have a meter recording made on that day. You can also learn in those phone calls if the tenant has followed through and established their accounts as it will come up as they inquire who is taking over, generally "yes sir/ma'am I see ______________ has an account set up to start on X date".

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As mentioned already, while 4.75% isn't optimal for carrying debt (especially with so many 0% and 1.49% auto loan offers out there) it's not like outrageous. Perhaps instead of comparing it to investment opportunities, just calculate the interest you will pay in total if paid over time, if that $amount is worth it to you...continue as-is.

Penfed and DCU both offer great rates to refinance the auto if you want to go that route: 1.99% for Penfed same term, 1.49% if you reduce to 36 months. DCU 1.74%

Up to 100% LTV and 120% LTV respectively.

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Originally posted by @Chanté Owens:

@James ClomanThe good thing is that FICO/Credit scores don't have a "memory" so to speak. That means, even if your score takes a hit for one or two months, if you have, say a DTI that is at a high 85% because of the properties you've gotten, and the debt you've secured, but over the course of two to three months you significantly reduce that debt, and get to under 30%, your credit scores will rebound and go back up. An example may be that you may have a credit card that has a 20k limit, and for one month, you have to use 19k of that to do buy some rehab materials. Your credit will take a significant hit, because it will show you are using 95% of your credit. Your score will drop; however, if you pay that off by the next billing cycle (before your statement cuts), it will report to the credit reporting agencies back to your 0 balance, thus increasing your credit score back up.

In your situation, depending on how fast you can get your DTI back under a certain %, then your scores will rebound. It's hard to say they'll go up by the exact amount of points that you lost, because there are various factors that come into play with your credit score, and each are weighted differently. Credit card info is based on payment history and % of usage and are about 35% of your credit score, which is a lot. Your average age of accounts is a pretty significant % of your credit score (which means if you had two credit cards and your average age of accounts was 8 years, but then you apply for 4 new credit cards today, your average age of accounts will take a hit thus causing a drop in your credit score too).

All of these things are strange algorithms that credit reporting agencies use to create your score. So, the number of inquiries you have on your credit report; average age of accounts; amount of debt, as well as your on time payment history, and % of credit that you are utilizing at any given time, are all factors that are taken into account. Also, closed end debts like car loans or installment loans are factored a bit differently than credit cards, which are open-ended credit products, but are still a part of of your overall credit score.

There are some good websites out there that assist people with understanding credit. They are free, and you can ask questions that are specific to your situation. As with anything though, when it's an open forum you do have to vet the information you receive, as it all isn't good...my .02.

Good luck!

Excellent post! I will add one minor caveat to "Fico scores don't have a memory"

Absolutely true in regards to month to month utilization for the bulk of the score fluctuations that will occur however, there is a minor subset algorithm that takes into account utilization over time e.g. Carrying high util for several months will result in a lower score than if you had corrected high util the very next month. A better source than myfico for results based study of Fico effects is creditboards especially the stickied Master topics. myfico forums are a bit restricted in discussing certain things as they are owned by Fico.

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please do have the integrity to post back here when you learn what I've posted is correct.

Good night.

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and can't leave that one hanging...someone is quoting credit karma or another brand of Fako score where it's true only open accounts are factored in AAoA

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Originally posted by @David Dachtera:

Originally posted by @Jerry Bruckenheimer:

Originally posted by @David Dachtera:

Originally posted by @Jerry Bruckenheimer:

Fico scores factor both open and closed accounts and the age of your credit file (AAoA) is 15% of your Fico score.

My credit expert is an expert witness and consultant to legislators. He would disagree with you about closed accounts.

You need a new expert.

I was actually going to suggest that to you. Find someone like my guy who can actually show you how FICo REALLY calculates scores (he's one of about five non-FICo people who can).

You might also ask your "expert" how many credit scores you have...

...and, for the record, Average Age of Accounts considers only OPEN accounts. Ask your credit guy why closing accounts LOWERS your score (multiple reasons).

Ok, good luck to you. You are correct.

For anyone who'd like the real answer to that question: closing accounts will not lower your score until 10 years later when that account falls off your credit report. If your FICO (clarify and emphasize) FICO score drops when you close an account it is because you've lowered your available credit and increased your utilization ratio.

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All Forum Posts by: Jerry Bruckenheimer

Jerry Bruckenheimer has started 1 posts and replied 76 times.

Post: Tenant screening with SmartMove, good credit score but bad debt?

Post: Tenant screening with SmartMove, good credit score but bad debt?

Post: Why do tenants wait weeks to report maintenance issues?

Post: Pine (maybe?) Wood Floors 1x6 - What should I do?

Post: Transfer utilities in tenants name

Post: Payoff car or buy investment property

Post: Credit Score Dropped 85 points

Post: Tenant screening with SmartMove, good credit score but bad debt?

Post: Tenant screening with SmartMove, good credit score but bad debt?

Post: Tenant screening with SmartMove, good credit score but bad debt?