Credit score after REI?

7 Replies

Just curious as to what happens to one's credit score after obtaining financing for REI? What can one expect after the first loan? And second, and third, etc? Let's assume all payments are made on time.

for several years, my FIFO dropped like a rock due to investing, I think at one time in the low five hundreds. Over time it has crept back up to over 700. It has never affected my investing activities. 

I think it depends on your overall credit profile (i.e. amount/type of credit accounts, payment history, credit utilization, etc).  I have multiple RE loans in my name, and even done a few refi's, and my credit score has never dropped below the low 800's.  Never had even one late payment either though, so I think as long as you're using your credit wisely and making all of your payments on time then you should be okay.

I have five mortgages (one on my home and four rental properties), and my credit score has remained in the 820's. As @Kyle J.  said, it will all depend on the rest of your credit profile, income, payment history, etc... 

Same here, my credit never suffered from REI financing and I'm at 830+, not more than the usual inquiry hit. Again, have a large amount of consumer credit available to you. I keep few cards with $25k+ credit lines. when I look at my credit report, I'm pleased to see they say "credit utilization" 4.5% lol.

Same here. Score in upper 700s before REI. In last 2 years, two mortgages in investment properties, refinanced primary residence. No impact on score...even with quite a few hard inquiries and a couple credit cards near maxed out for rehabs, then paid off. If your baseline score is good, I don't think you have to worry about taking a hit from REI.

My score has continued to rise, and we now own 5 properties, all with loans.  I've never paid anything late in my life, so I've never had anything bad on my report.  My scores lately have been upper 700s.  Haven't broken through 800 yet, I was told it's because I'm still too young (30), but I don't actually know for sure.  As long as it still puts me in the "excellent" category, that's what I care about.

You can get a FICO score, which is used by lenders.  Usually the full credit report will tell you 4 reasons why your score is what it is.

Here is the composition for your FICO score.

Payment history (35%)
Amounts owed (30%)
Length of credit history (15%)
Types of credit in use (10%)
FICO Scores will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.

More details here.

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