We’re looking at our mortgage and thinking about refinancing in order to take advantage of rates, which are about 2 points lower than our current mortgage. We received a letter from the bank, explaining the credit score. On a scale of 300 to 850, the score was 821. That’s pretty darn good if you ask me. But, it’s not perfect and since it’s not perfect the agency has to provide us with reason codes. Here’s what they told us regarding that score:
• Amount owed on revolving accounts is too high
• Too few accounts with recent payment history
• Proportion of balance to limit revolving accounts is too high
• Lack of recent non-mortgage installment loan information
The only two from above that might apply to our situation are the second and fourth ones. We have no credit card debt but we do use a Visa that is paid off monthly. Other than our house note and a car note, we have no debt. It seems crazy that that should count against your credit score. Oh well, 821 is awesome.