Warning Lenders, Beware the Closed Account with a Balance!

Warning Mortgage Lenders, Beware the Closed Account with a Balance. Credit Score Tips. Please be very careful when helping a borrower with a closed credit account that still has a balance outstanding. Especially if it is on the Student loan FICO score card. I was helping a great loan officer try and work on a report and we came up two points short. Given that I am the credit guy, I found a slam dunk option that I have seen work 100’s of times. I even tested it out on an advanced program we have to simulate changes to the credit score… Well it told us we would get 7 points. We got ZIP, ZERO, NOTHING still two points short. All the moves we made were nullified by the weight of the unpaid closed credit account… NOTE TO ALL, NEVER CLOSE AN ACCOUNT UNTIL IT IS A ZERO BALANCE!!!