JayB27 Posted February 6, 2015 Share Posted February 6, 2015 Quote Link to comment Share on other sites More sharing options...
tweak Posted February 6, 2015 Share Posted February 6, 2015 I am really confused. I thought it was discussed that the 90 day late has the complete negative effect for the whole 7 years... Did I miss something? According the spreadsheet, a 90-day late does have a negative effect for the entire 7 years. There is a bump when the late reaches 5 years old, but your scores do not fully recover. In my wife's case, the FICO drop from the 90-day late should go from 85 points @ 4 yrs to 55 points @ 5 yrs. Thanks. The big negative item I have is also a 90 day LP. So what I'm understanding is... Low utilization at the 5 year mark will give me an increase of 30 points? Yes - assuming all other things equal and the 90-late as your only negative. The way I read the spreadsheet, at 5 years: - score with 90-late goes up 40 points - clean score goes up 10 points - so net gain of 30 points -- at 5-year milestone Quote Link to comment Share on other sites More sharing options...
Cappy Posted February 6, 2015 Share Posted February 6, 2015 I am really confused. I thought it was discussed that the 90 day late has the complete negative effect for the whole 7 years... Did I miss something? According the spreadsheet, a 90-day late does have a negative effect for the entire 7 years. There is a bump when the late reaches 5 years old, but your scores do not fully recover. In my wife's case, the FICO drop from the 90-day late should go from 85 points @ 4 yrs to 55 points @ 5 yrs. Thanks. The big negative item I have is also a 90 day LP. So what I'm understanding is... Low utilization at the 5 year mark will give me an increase of 30 points? Yes - assuming all other things equal and the 90-late as your only negative. The way I read the spreadsheet, at 5 years: - score with 90-late goes up 40 points - clean score goes up 10 points - so net gain of 30 points -- at 5-year milestone Thanks for teaching the professor... I feel honored Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 6, 2015 Author Share Posted February 6, 2015 Meanwhile, back at the BI Labs, I've been going over the spreadsheet, and once again, I'm struck by how the FICO Estimator makes no distinction between #cc, loan or no loans, with a fresh PR or 90-day late. Quote Link to comment Share on other sites More sharing options...
JayB27 Posted February 7, 2015 Share Posted February 7, 2015 That is interesting indeed. Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 7, 2015 Author Share Posted February 7, 2015 I'm trying to tease out, the age at which negatives no longer totally overwhelm having additional credit lines Quote Link to comment Share on other sites More sharing options...
Aedynn Posted February 7, 2015 Share Posted February 7, 2015 Thank you so much for these charts and graphs. They are wonderful ! Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 7, 2015 Author Share Posted February 7, 2015 The lower score ranges are going to take a lot more work, but I should have an interesting result for clean reports this weekend. Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 7, 2015 Author Share Posted February 7, 2015 What I'm finding via the Estimator, is that if one is to have ONLY ONE credit line reporting a mortgage is the same as a $20k loan, but is worse than a lower balance loan. Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 7, 2015 Author Share Posted February 7, 2015 Quote Link to comment Share on other sites More sharing options...
Aahz Posted February 7, 2015 Share Posted February 7, 2015 Most likely I'm misreading your graph (they're far from my strong suit) but... The top three are all with a loan, right? Would it be terribly difficult at this point to add in the various CC lines without any installments for comparison? Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 7, 2015 Author Share Posted February 7, 2015 Once you have one credit card, the FICO Estimator doesn't care if there are loans or not. The score is the same with or without any loans Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 7, 2015 Author Share Posted February 7, 2015 Adding a new loan to any of the 3 series of credit cards, will drop the score due to a new account being added I'm working on how best to present that Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 8, 2015 Author Share Posted February 8, 2015 Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 8, 2015 Author Share Posted February 8, 2015 What's interesting about the above graph is that having absolutely no open accounts is the worst possible score for otherwise clean reports. Adding just a mortgage gains 25 points at the 6 month mark, but at 2 years, a mortgage is the same score as no open accounts. Adding 1 loan on top of the mortgage gains another 20 points. Adding 1 credit card also gains another 20 points, more cards than one just nets 5 points at the 6 month mark. Quote Link to comment Share on other sites More sharing options...
Konrad2012 Posted February 8, 2015 Share Posted February 8, 2015 (edited) I find the little anomaly intriguing where [1cc+ loan] and [2cc+loan] maintain 5 points of difference until merging at 10 yrs, and then go back to their 5 points at 15 yrs Edited February 8, 2015 by Konrad2012 Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 8, 2015 Author Share Posted February 8, 2015 Sharp eyes K, I double-checked the numbers, they're correct, so the 10-yr mark is special. There are similar convergences for varying loan balances at 5, 10 & 15 years. Quote Link to comment Share on other sites More sharing options...
JayB27 Posted February 8, 2015 Share Posted February 8, 2015 Very nice work. Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 8, 2015 Author Share Posted February 8, 2015 Thank you, thank you, I'll be here all week. Quote Link to comment Share on other sites More sharing options...
JayB27 Posted February 8, 2015 Share Posted February 8, 2015 I think people get so used to seeing this stuff, they don't realize the amount of work involved. There a TONS of hours in this. I have stated earlier in this thread I believe, when you are gone BW, which is no time soon, this stuff is classic. Your work is part of history. I appreciate the time you put into it, it's VERY helpful. Quote Link to comment Share on other sites More sharing options...
Konrad2012 Posted February 8, 2015 Share Posted February 8, 2015 So the 3 revolver mantra really needs to be changed to the 5 revolver mantra once you have two years of established history for maximum effect? Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 8, 2015 Author Share Posted February 8, 2015 I guess less beatings this week for you. Quote Link to comment Share on other sites More sharing options...
BobWang Posted February 8, 2015 Author Share Posted February 8, 2015 So the 3 revolver mantra really needs to be changed to the 5 revolver mantra once you have two years of established history for maximum effect? I think it's really > 2 The FICO Estimator is a rough tool, but FICO HAD to have a reason to differentiate between 0, 2 to 4, and 5 or more credit cards. Quote Link to comment Share on other sites More sharing options...
JayB27 Posted February 8, 2015 Share Posted February 8, 2015 So the answer of having 3, could be altered? Quote Link to comment Share on other sites More sharing options...
JayB27 Posted February 8, 2015 Share Posted February 8, 2015 Sweet Baby Jesus, I just opened the link in your sig BW, I never knew it had THAT many different tabs. Quote Link to comment Share on other sites More sharing options...
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