FICO Effects Spreadsheet

[BobWang]

So the jump on Fico was 36 points. The only thing that happened last week was that he disputed two AU accounts and one is off and the other "updated" as of this afternoon.

 

Would AU make this much of a difference?

 

One was charged off, unpaid, updated to paid and current and they updated to remove a year and a half of 120+ day lates and show a zero balance. The other had lates and had a maxed balance. This one was deleted completely.

 

But I didn't think AUs counted for much? Would that account for a spike in 36 points?

 

 

[BobWang]

 

 

 

 

Even though the bump is between 1.25% and 2.50% UTI,

 

my personal experience is that just barely above 0% is ideal.

[GonnaGetEm]

You seriously need a key. I'm not a dumb person but how can we have any clue in heck what these mean? Seriously. I have always been willing to put in the work, research, manpower/hours, etc but this drives me insane. 0-4 WHAT? children? credit cards? years? hundred dollars? I used to learn the most from spreadsheets but since the switch to graphs I just am always lost, which is a huge part of why I gave up with trying to help with research around here a few years ago. makes me sad.

Edited March 9, 2014 by GonnaGetEm

[BobWang]

# of cards

[up&climbing]

# of cards

 

 

Well that clears that part up

 

I've been looking at your graphs for a while as well but never quite understood them, however I assume since you update them regularly that there is some valuable data here

 

Time to download again to see if I can figure out what goes through BW's mind.

 

I know I'm in for a treat!

[cv91915]

You seriously need a key. I'm not a dumb person but how can we have any clue in heck what these mean? Seriously. I have always been willing to put in the work, research, manpower/hours, etc but this drives me insane. 0-4 WHAT? children? credit cards? years? hundred dollars? I used to learn the most from spreadsheets but since the switch to graphs I just am always lost, which is a huge part of why I gave up with trying to help with research around here a few years ago. makes me sad.

 

Did you read the title of the graph?

[BobWang]

Oops,

 

should be UTI

[cv91915]

Oops,

 

should be UTI

 

[BobWang]

 

 

Lately, a lot of people have been saying 1% overall UTI maximizes FICO.

 

That is not true.

 

If I let 1% or $10k report,

 

my FICO would probably drop 25 points.

 

 

The exact recommendation is $2 on one card.

 

$1 on cards that don't report $1 as $0

[BobWang]

 

A late payment is a late payment,

 

even if there are no more lates,

 

the damage remains as long as that late is being reported

[BobWang]

Look at the light-blue and purple plots.

 

Those show the difference between having ZERO open accounts,

 

and even having just 1 loan.

 

Adding additional CCs also provides a little boost

 

 

 

Also notice that the CCs are +/- loan,

 

IOW, if you have CCs,

 

FICO doesn't really much care if you have any installment loans.

[BobWang]

 

Since the Estimators don't have an AAOA input field,

 

oldest account serves as a proxy.

 

IOW, with only one card,

 

oldest account *IS* AAOA and AAOOA.

 

The major milestones are 2, 4, 7 and 10 years

[BobWang]

 

 

 

[BobWang]

[BobWang]

 

 

 

 

 

When we're talking about FICO scores,

 

and NOT FAKO scores,

 

having an old baddie account deleted

 

can actually hurt.

[TX-Bluebonnet]

Do the numbers along the bottom represent Months?

[BobWang]

Years

[TX-Bluebonnet]

Thanks. So then...

 

My installment loan opened 08/2001 with a DOFD of 11/2007. It's scheduled to come off toward the end of the year. Since I have a mid-score I can expect a drop of approx 15-20 points.

 

Sound about right?

[BobWang]

Depends on your AAOA of your other accounts.

[TX-Bluebonnet]

LOL. Just when I think I have something figured out... <sob>

[BobWang]

 

A minor 30-day late can cost the best profiles 110 points,

 

and keep hurting for 25 points out to 7 years.

[laynlow]

So, if I'm reading this right, going from about 10% utilization to 50% is worth roughly 50 points?

Does it work equally going in both directions (same number of points going down in utilization as going up)?

I had thought the effect would be more severe..

[BobWang]

Going up in utilization costs points immediately.

 

Reducing utilization gets those points back slower,

 

because having high utilization re-buckets the profile.

 

It took me 4 months to recover from 10% utilization

 

when my AAOA was <10 yrs.

 

Now I get them back as soon as I reduce utilization.

 

But, my situation is unique,

 

not many here have AAOA > 10 yrs.

[laynlow]

I am over 10 overall, about 8 open only.

[BobWang]

The utilization won't hurt you as much as the average profile.

 

But the only way to be sure,

 

is to test.