FICO 08 and revolving usage versus AU usage

[Menta33]

I just discovered that AU credit card usage does not count as my DW just got these as negative reasons 2 and 3 for why her score is not higher:

• Not using credit
  • There are no recent balances on your revolving credit accounts.
• No credit card activity
  • There is no recent activity on your credit cards.

But, at least one AU card is reporting a non-zero balance.

 

Perhaps this is already well known, but I hadn't noticed it before, so I'm sharing it here.

[mendelssohn]

Good info.

 

Some of us were just talking about this the other day.

[hdporter]

There was extensive discussion in the news that FICO 08 was amended prior to implementation so that "legitimate" authorized users would have AU accounts factored in scoring. FICO 08 was still designed so that suspect "piggyback" accounts would be ignored.

 

Details have never been released as to how FICO 08 would distinguish the difference.

 

I can't say what's the influence in Menta's wife's score. Unfortunately, there's no dispute mechanism for FICO scoring.

[tweak]

Thanks -- I am interested in this as well.

 

I have 2 open AU revolvers.

In Jan, I added 2 individual revolvers (previously I had none).

 

All cards (AU and individual) have been recently used in all examples below.

 

 

Before my individual cards reported, I saw the FICO reason codes:

- There is no recent activity on your revolving accounts.

- You have too few credit accounts.

- However, the myFICO report did include the AU accounts under the list of accounts reporting a balance.

After my individual cards reported, those reason codes went away, and this reason appeared:

- TOO FEW ACCOUNTS CURRENTLY PAID AS AGREED: You have very few accounts you are paying as agreed or you've missed payments recently on some of your accounts.

(which I think is the "thin file" code in my case)

I suspect FICO includes AU accounts in some metrics (such as utilization)

but only considers individual (or joint) cards in some other metrics.

My report from myFICO (with only AU accounts) was ambiguous as to whether FICO counts AU cards as "cards with a balance"

- Reason code: "There is no recent activity on your revolving accounts."

- List of accounts with a balance DID include the AU accounts with a balance.

Edited June 2, 2015 by tweak

[Menta33]

I wonder if AU high utilization will hurt your FICO 08?

 

Anyone want to be a guinea pig and ask the sponsor of their AU to max out their card(s)?

Edited June 2, 2015 by Menta33

[scarchelli]

I wonder if AU high utilization will hurt your FICO 08?

 

Anyone want to be a guinea pig and ask the sponsor of their AU to max out their card(s)?

Im an au on my dads barclays card and his util was 68% last month when I went on as an au. My ex fico is 602 from no score available at all beforehand. This month his util will be 20% or so. I expect a good jump still. Edited August 10, 2015 by scarchelli

[pokerdave]

Rather fortunately in 2007 my parents put me on their gm card i thought temporarily so that I could use their GM dollars to buy a new Tahoe. When following the advice about deleting addresses they would not let me delete my parents address even though I had never lived there because of that card( they had never removed me ) Card was opened in 94 and currently has a 17k limit and reading my credit reports it looks like they haven't utilized more then 1100 in a month for the last year. . My parents are PIF with everything i'm sure superprime because they haven't paid interest on anything ever except their mortgage. I have 13 chargeoffs that are 5 yrs 8 months, 2 irs liens showing , and 2 mortgage tl foreclosures. I did remove the foreclosure from TU 5 months early (Thanks CB). Anyhow i've wondered why my FAkos on credit karma were in the 640s for the last year . The only other positive tl i have is creditone which I got in January and pif monthly. I realize this was a mistake to get this card but it was before I found CB so i will keep it for another year to build . ive opted out and am stopping work on my credit repair till december when the SOL expires on those chargeoffs so I don't poke the bear. 12/22 and I am free of SOL then just have to work on my 2 judgement's which I will be asking for advice with on a different thread. As you can see my credit should not be 640, but I will have him use the 2.00 trick and report the change in my score and also do it on my Credit one card.

[AKAGeorgiaGirl]

Hubby is an AU on a couple of my cards. Accidentally reported reported ~90% last month, will be ~10% when next statement cuts on the 4th.

 

I was just added to AU on one of his cards. It reported to EQ yesterday - and FICO 08 did not give me an alert for the new account. But maybe it will come today.