FICO 08 Uses Amex Charge Card Balances!

[cashnocredit]

Well, I've gotten used to charge card balances having zero affect on my FICO score and have had balances change from 0 to 60k without it making even a point difference in EQ 04 FICO scores.

 

No more.

 

Account converted and FICO dropped 9 points. I thought it was just a difference in models.

 

Then my Amex reported a new balance of 5k, down from 20k. FICO jumped up 9 points to what it was before the conversion. Then....

 

My Citi reported a small balance. Score dropped one point. Under the previous model the score would have dropped about 7 points with the additional tiny, non-zero balance.

 

So Amex counts in utilization for EQ 08 FICO even though it's a charge card and even though my high Amex balance is around 60k.

 

 

[cashnocredit]

I've checked the impact of Amex balances on TU08 and found there appears to be no impact so this seems specific to EQ08 and probably related to large balance fluctuations. We need others with EQ08 Scorewatch and charge card balances to provide input.

Edited June 14, 2014 by cashnocredit

[cv91915]

I'm participating in the FICO experiment. I will try to remember to note when the number of cards that have balances reporting includes charge cards.

[almostanonymous]

My charger will report for the first time this month. Will see if the balance is an issue on both 04 or 08. It's d* so there won't be a dip for a new account.

[ChrisAZ]

Interesting, thanks for the info...

[BDK]

I'm not surprised..

[cashnocredit]

Verified.

 

I've now had 3 isolated balance changes on Amex and FIFO 8 SW has moved up and down accordingly. Amex balances changes have about half the effect of changes on revolvers but it is probably because the high balance on my Amex is 60k while my revolver CLs are 25k or less.

[shifter]

interesting.

 

so it uses the high balance as the credit limit to util purposes.

[foeplay]

The drop in points can also be due to number of credit accounts with a balance.

[cashnocredit]

The drop in points can also be due to number of credit accounts with a balance.

 

I've had score watch set up to show alerts on each balance change +- $5. The FICO score changes on Amex balances have been consistent and isolated to Amex balance changes. Oddly, TU's FICO 08 doesn't show the same sensitivity though that is less certain as I only get them once a month.

 

The Amex score changes did not occur prior to the conversion from FICO 4.

[cashnocredit]

After examining closely EX, TU, and EQ FICO 08 score changes it seems that only EQ's scorewatch FICO 08 shows any impact. I pulled EX twice, a week apart, with only a large Amex balance change reporting and there was no change at all in the EX FICO 08. TU is more complicated as I only get them every month so typically a lot changes. However, I have had some large balances changes on Amex in the last 18 months and there does not appear to be any impact on TU FICO 08. EQ's SW OTOH, which was upgraded to FICO 08 3 months ago, has shown appropriate, up-and-down, movement in scores coincidental with Amex reporting in 3 successive months when the Amex balance change was the only event reported.