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BobWang

FICO Effects Spreadsheet

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The FICO Effects Spreadsheet takes results from 2 Estimators:

FICO: http://www.whatsmyscore.org/estimator/

FAKO: http://www.creditcar...core-estimator/

It helps to know your way around Excel to modify the data and X-Y charts.

But, you can also just change the data, and the charts should update.

If your personal data fall outside the fixed ranges, just right-click on the axes and choose "Format Chart" and modify the axis range.

The current spreadsheet opens at "Lates"

Lower left-and corner gets you to the first chart which is "Utilization"

Comes with no guarantees, modify away, take credit if you want to. tongue.gif

P.S. XL files can be opened by Open Office and converted from there.

 

 

 

up to date 6/28/14

FICO Score Effects v5.xls

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UtilizationEffect.jpg

 

These are only approximations produced by the FICO Estimator.

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

 

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%

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Thanks for that last post :) I guess I just have one question at this point...my bank reports my statement balance and also the high balance at the end of each period. When you use the term "utilization", do you essentially mean, in my case, statement balance divided by credit limit? Thanks..

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Thanks for that last post :) I guess I just have one question at this point...my bank reports my statement balance and also the high balance at the end of each period. When you use the term "utilization", do you essentially mean, in my case, statement balance divided by credit limit? Thanks..

Utilization is whatever is reported on a non-No Preset Spending Limit card, divided by the credit limit.

 

Some issuers will report at times other than statement close date, but if your bank reports statement balance, divide that by credit limit.

 

Keep in mind that 2 utilization percentages are calculated by the "official" FICO score.

 

Individual card utilization, and overall utilization, which is sum of all balances divided by sum of all credit limits.

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Thanks so much...that clarifies a lot for me :) So would you say that a decent strategy is to aim for a utilization of 1% for each credit card, regardless if I have one credit card or several? Thanks..

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Numberofcardseffect.jpg

 

No, only one card at 1%, because you get penalized for > 2 cards with balances

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Okay...I think I got it now. So if I have just one card, keep utilization at 1%. If I have "n" cards, keep utilization at 1% for one card, and keep it at 0% for "n-1" cards. Is that desirable? Thanks.

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Okay...I think I got it now. So if I have just one card, keep utilization at 1%. If I have "n" cards, keep utilization at 1% for one card, and keep it at 0% for "n-1" cards. Is that desirable? Thanks.

Yes, when you have cards > $40k-$50k credit limit, there's an additional consideration of whether they are included in utilization calculations.

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Thanks :) I had one more question...my bank also reports the "high balance" during a period. Does this figure into my credit score at all, and, if so, what is a good rule of thumb about what sort of ceiling I should impose on the high balance? Thanks.

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Thanks :) I had one more question...my bank also reports the "high balance" during a period. Does this figure into my credit score at all, and, if so, what is a good rule of thumb about what sort of ceiling I should impose on the high balance? Thanks.

The high balance doesn't figure into utilization, UNLESS it's reported mid-cycle.

 

IF *I* were designing the FICO algorithm, and high balance WERE available as a data point, I would include it.

 

Think about it, if somebody routinely charges 90% of their credit limit, but pays it down to 0% before reporting, it means that somebody couldn't get a higher credit limit.

 

Especially on manual review, LARGE high balances would be a warning sign in my book.

 

Now, if we're talking about a $150 re-builder card, it may actually be better to be hitting up against the low limit, as an indication that more credit should be extended.

 

I always tell people to put themselves in the lender's shoes.

 

How would you evaluate the scenarios posed, assuming you had your own money at risk, and wanted to make a profit?

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I should have asked here before I made a move. I was recently added as an AU to an account that is 21 years old. I am unsure if it will report or not on my CR. My AAOA is around 3 yrs or a little less. If this new account reports it will add 1.5yrs to my AAOA, but at the same time there is 38% of $ 5,700 utilization on that account and it gets paid at the minimum payment so that util will be there for a while. As far as I know the history is perfect and no lates. Did I do the right thing in trying to gain AAOA even though the util is high? My Fico shows a negative for a short credit history due to all my new accounts. Thanks..

 

It would be best to just enter all your pertinent data into the FICO Estimator and see what comes out, but the general pattern is illustrated by the following 2 charts:

 

UtilizationEffect.jpg

 

 

AcctAgeEffect.jpg

 

Basically, going from 1% to 40% Utilization costs 20-50 points.

 

Going from AAOA of 3 to 5 years only gains about 10 points.

 

But, you really should enter your own data to get a clearer picture.

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That's a terrific point you make. On second thought, I guess my high balance question was just another way of phrasing my original question in the thread I created (ie. what % of the credit limit is safe to charge in a cycle?). Since my bank does NOT report mid-cycle, it looks like I could theoretically charge up to 100% as long as I pay off enough of it prior to the reporting date to leave a statement balance of 1% of my credit limit (but I would never charge that much). In my research, I've read you shouldn't charge more than about 40% of the CL (although, and please correct me if I'm mistaken, I think this presumes that none of the balance is paid down prior to the reporting date, so that the 40% of CL is what shows up as a statement balance). Maybe (at least for someone who has a CL that is not negligible) charging under 50% of the CL shows a measure of financial self-discipline which is appealing to lenders. Appreciate your thoughts...thanks.

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The high balance hit during a billing period MAY ALSO be reported.

 

e.g. I happened to put $22k on my British Airways $32k Visa Signature last April.

Statement closed with only an $852 balance, but that 22k shows on all 3 of my reports.

 

I'd never really looked at my high balances before, but here are some samples:

 

0.9K/100K NPSL

9.5k/25k NPSL

13k/50k NPSL

13k/30k NPSL

22k/32k NPSL

 

0.9k/6k non-NPSL (Fraud in 7/2012, GECRB PayPal $0 Statement Balance)

1k/25k non-NPSL

1.4k/100k non-NPSL

1.6k/25k non-NPSL

2K/40K non-NPSL

2k/50k non-NPSL

3.4k/30k non-NPSL (PenFed CLI to the 39k NPSL resulted in closed account)

3.4k/39k non-NPSL

3.8k/30k non-NPSL

4.2k.27k non-NPSL

 

None of the above High Balances affected FICO.

The only High Balance to have an effect was when statement closed with 10% utilization

 

 

2k/20k non-PSL Discover Business (Closed @ 10% Utilization, Cost 18 pts on Equifax FICO)

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I've read you shouldn't charge more than about 40% of the CL (although, and please correct me if I'm mistaken, I think this presumes that none of the balance is paid down prior to the reporting date, so that the 40% of CL is what shows up as a statement balance). Maybe (at least for someone who has a CL that is not negligible) charging under 50% of the CL shows a measure of financial self-discipline which is appealing to lenders. Appreciate your thoughts...thanks.

As a general rule I agree with not going over 40% of the limit.

 

I've run hundreds of thousands, if not millions through all my big issuers, so they probably cut me some slack. ;)

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Now to address Saleen's question re: AAOA vs utilization.

 

1st thing to note is that the new account hit is pretty much gone at 6 months.

 

That's why the FICO Estimator only asks about new accounts in the last 6 months

 

1new1oldFICO.jpg

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AcctAgeEffect.jpg

 

Next, note that the big jump in score is at 2 years of age, then flat between years 2-4.

 

Another bump at 5 years, then increasing to year 10.

 

Then flat again between 10-15, with another bump at 20 years.

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Thanks again for the clarification :) I just want to make sure I understand you correctly in one regard: you would recommend charging under 40% of CL during a period even in the case of one who keeps his reported statement balance at under 2% of CL?

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Thanks again for the clarification :) I just want to make sure I understand you correctly in one regard: you would recommend charging under 40% of CL during a period even in the case of one who keeps his reported statement balance at under 2% of CL?

If the credit limit is in the thousands, I would not go over 50%.

 

For small credit limits in the hundreds, I WOULD get closer to 100% to nudge for a CLI.

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InquiryEffectonFICO.jpg

 

 

 

As expected, my one Equifax inquiry from JFCU, on Sunday the 9th, had no effect.

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Thanks again for the clarification :) I just want to make sure I understand you correctly in one regard: you would recommend charging under 40% of CL during a period even in the case of one who keeps his reported statement balance at under 2% of CL?

If the credit limit is in the thousands, I would not go over 50%.

 

For small credit limits in the hundreds, I WOULD get closer to 100% to nudge for a CLI.

 

 

I charge close to 100% on my small limit cards but it kills my score, but then again I do rollover balances.

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I was curious about one more point also. You said that, if you have multiple cards, you should keep $0 reported balances on all except one. Is there some criteria you should apply to determine which of those cards does not get paid down fully? Thanks.

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I was curious about one more point also. You said that, if you have multiple cards, you should keep $0 reported balances on all except one. Is there some criteria you should apply to determine which of those cards does not get paid down fully? Thanks.

1 or 2 are OK.

 

When I have 3 balances reporting, I get a small ding, a couple of points.

 

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

 

That said, I use my Citi Forward as the reporting card because it is non-NPSL.

 

IOW, you don't want a Visa Signature or a World Mastercard to be the only one, those may not be factored into utilization.

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