Auto scores like Auto loans

I guess I can make an argument for why this makes sense, but it's interesting to see this negative reason code. It looks like the presence of an [open] auto loan on the older EX Auto 2 and EX Auto 8 is necessary to eliminate that negative reason statement: On the newer EX Auto 9 however, I don't get this negative statement. While it's not proof, there's a chance that EX Auto 9 doesn't care if you've got an open auto loan... or at least it cares about it less. I'm also certain that this code is pointing to an open auto loan, as I've got 4 closed auto loans on my CR that clearly don't eliminate the code.

I agree with your observations.

It makes me wonder if mortgage scores like mortgage loans?

Has anyone without an open mortgage seen a negative reason code on 2/4/5 that points to no mortgage loan activity or something similar?

Cool DP. Your question about mortgage scores is interesting. Here are my initial thoughts and observations. My understanding is that the scores we have come to refer to as mortgage scores were not originally designed or marketed as such. They were the general purpose, state of the art FICO scores of their day, right? That doesn’t rule out the mortgage fetish you’re inquiring about, but it seems to lessen the likelihood of it. I have never received a “lack of active mortgage” reason statement, and I think I’m a likely candidate for it if it was in play on 2/4/5. I have one baddie, a 30D, that usually keeps my scores below 800, so I usually see reason statements. I have no mortgage on my file, open or closed. The reasons that I tend to see in third and fourth position generally seem to represent pretty small point losses. We all know how tricky it is to draw solid conclusions about reason X costing exactly Y points, but my fringe reasons seem to cost around 3 points each. Adding it all up, I think this shows that if 2/4/5 do have a “no active mortgage” penalty, it costs fewer than 3 points on my profile. That’s pretty close to saying there isn’t one. Also, didn’t one of the FICO officials say in the MF AMA that there is no characteristic in any FICO score model that penalizes a consumer for not having a mortgage? Unless that person was being intentionally misleading with phrasing (e.g. it’s not a penalty, it’s just a failure to award points), that seems pretty conclusive.

You could be right about that.

I guess the penalty vs awarded points is sort of a glass half full / glass half empty argument. While there may be no penalty for not having a mortgage, we do know that a profile is scored better for having an open installment loan... so on an otherwise loan-free profile (like mine) I would be in a worse place without the mortgage on my CR. I fully get that this is sort of an exception to the rule and I understand the language with which they made that statement.

Off topic, what's the deal with your 30D late? No doubt you've worked to get it removed, presumably without success?

BrutalBodyShots wrote: ↑Thu Feb 03, 2022 3:56 pm Off topic, what's the deal with your 30D late? No doubt you've worked to get it removed, presumably without success?

I got sloppy/lazy/stupid in 2017 and short paid a Capital One card by something like $20. I tried to get them to GW it off. Got to talk to human beings from the EO a couple of times, but no dice. I wouldn’t go so far as to call it a mixed blessing, but the score ding hasn’t cost me all that much in extra borrowing costs, and it has enabled me to see reason statements nearly all the time. Out of the blue, TU wiped off the 30D when it was 49 months old. That was this past December. EX and EQ still show it. So I can report with high confidence that a 49 month old 30D cost/gave me 33 points on TU8. The TU4 DP is murkier, but it was around 30 points.

How hard have you pushed for its removal? I know that C1 can be tough, but there are definitely GW success stories out there. You could always reach out to someone privately that found GW success with C1 and see if they have a direct contact to them. It could improve your odds for success.

It's definitely cool that you were able to quantify some point changes with the 30D removal.

By the standards of Mr. Saturation, not hard at all. Sent off three small rounds of letters. Got nibbles from two of them. “I screwed up and I’m sorry” doesn’t make it to the top of the sympathy pile, nor should it. I’m not really motivated to keep trying. I’ve made my peace with the ding. I screwed up, this is the consequence. Besides, even with the baddie, all my scores hover between 760 and 800 (variance due to credit-seeking), so getting those 30 points back wouldn’t change anything tangible. Your writings on the subject are great though. Must-read stuff for anyone seriously committing to a rebuild. Thank you for your service.

I hear you and that's a good attitude to have. If I only had a single 30D I'd probably have let it go as well. I guess it was a blessing in disguise to have multiple accounts with 90D+ crap on my CR, as it gave me a reason to develop the Saturation Technique, which ultimately helped others.

I agree that your scores are top notch regardless, so well done!