FICO Effects Spreadsheet

[ncs22]

Thanks What about if all of the cards are non-NPSL? Is there a way in that case to determine which 1 or 2 cards to not pay down fully?

[BobWang]

Thanks What about if all of the cards are non-NPSL? Is there a way in that case to determine which 1 or 2 cards to not pay down fully?

ceteris paribus, pick the largest credit limit.

 

You just want $2 reporting, and the larger the credit limit, the better it looks on manual review.

[ncs22]

Thanks very much This thread has been enormously helpful. I will for sure, if you don't mind, seek out your advice here in the future if anything comes up.

[BobWang]

Thanks very much This thread has been enormously helpful. I will for sure, if you don't mind, seek out your advice here in the future if anything comes up.

Just post a question, lots of people here know a LOT more than I do.

[ncs22]

Will do Thanks again

[BobWang]

Oh FYI my only negative on experian is a paid judgement from 2009. I dont have any idea why the fico is 50 points lower than TU that is 98% the same exact report. Drives me CRAZY.

I'm not happy with the following chart, because it shows ~100 point penalty for a 36 month old collection.

 

But it's the best I can get from the FICO Estimator:

 

[BobWang]

[ncs22]

Just one question re: utilization. Let's say you only have one card, for simplicity (and that Utilization equals statement balance divided by CL). Is the utilization calculated on a given date based on the most recent statement balance, or is it an average of all utilizations up until that date? For example, let's say SB/CL was 5% at the end of one period (let's say this is the first cycle for the card) and 1% at the end of the next period. At the end of the second period, should the person be thinking his utilization is 1% (a good thing), or should he be thinking it's (5%+1%)/2, or 3% (still good, but falling outside the recommended 0%-2% range)? Thanks

[BobWang]

It's the last reported balance & limit.

[ncs22]

Does that imply that one only need be concerned about his or her utilization when, for instance, he or she is planning on applying for a loan of some kind (ie. when the credit score "matters" more)? Or would it be better to follow the "credit etiquette" you laid out consistently? Thanks

[BobWang]

Does that imply that one only need be concerned about his or her utilization when, for instance, he or she is planning on applying for a loan of some kind (ie. when the credit score "matters" more)? Or would it be better to follow the "credit etiquette" you laid out consistently? Thanks

Most of us try to keep FICO score in tip-top shape constantly.

 

You never know when a fabulous, time-limited opportunity will pop up.

[Saleen]

Bob, I have a few statements closing on the 17th and need to know which way to pay. I didn't expect it so quick but a 20yr old AU account showed up yesterday that added some AAOA to my CR. However, it came with 38% util on that card. Since I cannot pay that card down ($2,200) to a low util should I pay all my other cards to $0 and only let that card report with a balance? I've studied your graphs, but still confused on whether FICO wants 1% total utilization or just the 1% on one card and the rest at $0. I'd have to carry a $400 balance to achieve the 1% total util of all cards. The AU account alone will be 6-7% of my total utilization on all my accounts.

 

USAA EX FAKO jumped 20 points when the new AU account appeared last night. Still waiting on EQ and TU FAKO's to find the AU as well as ScoreWatch to alert me so I can see how EQ FICO sees it. I am not planning to app for anything, just want to be in good graces with my current creditors for future CLI's. Bob, I know that creditors know the AU is not mine, but for scoring purposes, if FICO adds the additional AAOA and the score increases then it is in fact a positive thing, for say online apps where no manual review is needed, etc? Thanks.

[BobWang]

No way to tell about AU accounts these days before the fact.

 

It's a non-0% balance on 1-2 cards that is best, it can be <1%.

 

IOW $2 on a $30,000 card is sufficient.

 

$40-$50k limit cards and above MAY NOT be factored into utilization.

[BobWang]

Revolving credit has a MUCH bigger impact than installment loans:

 

[Guest shazhi]

When I have 0 reporting I get a BIG ding, 6 to 17 points.

 

 

 

YOU WILL GET A BIGGER DING IF ON YOUR NEXT POST YOU TRY AND PUT UP AN OUTBOUND LINK WITHOUT OUR PERMISSION.

Edited August 15, 2012 by MarvBear
NO OUTBOUND LINKS FOR SOLICITATIONS

[BobWang]

Just curious...is it better, in general, to have 1 card with a 20K limit or 2 cards with 10K each? In general, higher limits are desired, but having 2 cards is better than having only 1. See charts below.

Trying to maximize FICO score.

I currently have CSP with a 10K limit, a Palladium with a 20K limit (non reporting), a AMEX Plat, and a Citi Plat with 2K limit.

Am also an AU on spouses AMEX Plat Delta with 25K limit.

I am debating whether to up the limit on the CSP to 20K (they tell me it should not be an issue) or to open a new Chase card (thinking Fairmont or Ritz).

Any opinions? If you REALLY want to maximize FICO in the long run, you'll need more solo accounts. >5 for FICO, >12 for FAKO

BTW, I really like the CSP and use it daily...

 

 

 

[BobWang]

[BobWang]

Just curious BobWang, since you seem to be the authority around here to ask this type of question , I was wondering when IIB's fall off a credit report after the 7 year mark, how many points on an actual FICO do they raise points? On EQ, we saw a rise of 60 FAKO points after some IIB's fell off, but I know FAKO and FICO can vary a great deal.

 

I'm definitely NOT well-informed regarding bankruptcies, I extrapolated the Estimator out to 10 years, but that's just GUESSING.

 

[BobWang]

 

These are only approximations produced by the FICO Estimator.

Individual credit files will give different results, but the trends should be the same.

 

Utilization is calculated both individually, and overall.

 

The different profiles are:

 

Single 20 year-old credit card with a $20k credit limit and:

 

20 year-old loan

3 month old loan

30 day late 4 years ago

30 day late 6 months ago

90 day late 4 years ago

 

The purple line is for a clean file with only a 6 month old $20k credit card on it.

 

For many people, there is a penalty for $0.00 total credit card balances.

Best FICO score from utilization is to keep it above 0% and below 2%

[qwerty4]

Just curious...is it better, in general, to have 1 card with a 20K limit or 2 cards with 10K each? In general, higher limits are desired, but having 2 cards is better than having only 1. See charts below.

Trying to maximize FICO score.

I currently have CSP with a 10K limit, a Palladium with a 20K limit (non reporting), a AMEX Plat, and a Citi Plat with 2K limit.

Am also an AU on spouses AMEX Plat Delta with 25K limit.

I am debating whether to up the limit on the CSP to 20K (they tell me it should not be an issue) or to open a new Chase card (thinking Fairmont or Ritz).

Any opinions? If you REALLY want to maximize FICO in the long run, you'll need more solo accounts. >5 for FICO, >12 for FAKO

BTW, I really like the CSP and use it daily...

 

 

 

Bob, I posted this in a different thread. The image below (I believe) was posted years ago by Dr. Tang, and I am nearly certain is based on the TU98 model. Of note, it is interesting that, according to this graph, ANY utilization for those with excellent credit is considered a negative by TU98 (but not those with moderate/bad credit). It would be interesting in your experimenting to pull a TU98 score if you ever have a month or time period of zero utilization to validate or disprove this.

 

Edited September 19, 2012 by qwerty4

[BobWang]

Good point.

 

I actually have a bunch of TU98 scores since I had the myFICO quarterly monitoring for a few years.

 

Let me look through my records, and see if I can present it graphically as well.

[BobWang]

 

qwerty, turns out I never had 0% utilization on any of my TU98 scores.

 

At some point, I may have to give up the $1 Citi Forward gives us for having a balance, for the sake of science.

[BobWang]

 

My usual advice is to pay down higher interest debt first.

BUT, if FICO scoring is an important factor, use the FICO Estimator

 

These are only approximations produced by the FICO Estimator.

Individual credit files will give different results, but the trends should be the same.

 

Utilization is calculated both individually, and overall.

 

The different profiles are:

 

Single 20 year-old credit card with a $20k credit limit and:

 

20 year-old loan

3 month old loan

30 day late 4 years ago

30 day late 6 months ago

90 day late 4 years ago

 

The purple line is for a clean file with only a 6 month old $20k credit card on it.

 

For many people, there is a penalty for $0.00 total credit card balances.

Best FICO score from utilization is to keep it above 0% and below 2%

[BobWang]

 

The FICO Estimator gives a 715-765 range for somebody with ZERO open accounts, but with a LONG positive history

[Thirst]

Anyone want to play "guess" the score? I'm currently at 651 EQ FICO with

 

18k in balances of 130k limit

 

7 accounts with balances Balance/Limit:

 

 

3,261 / 4,000

6,100 / 24,000

24 / 3,600

8 / 1,500

917 / 1,800

4,200 / 5,000

4,000 / 5,000

 

 

What would my score be if:

 

A. Pay off the first account of 3,261, now with 6 accounts with balances

B. Pay off 3,261, 24, 8, 917 balances. Leaving 3 accounts with balances

C. Pay off all balances except for the 6,100 balance (FWIW, FICO simulator says 691-731 if I pay 18k in balances)

 

I know it's hard to estimate given that there are a bunch of other things on my report but if you're bored, take a guess!

 

Thanks for playing

Edited November 10, 2012 by Thirst