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Mega Contributor
RobertEG
Posts: 18,431
Registered: ‎03-19-2007
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Re: CC util FICO thresholds?

Clean and dirty credit reports are based on the distinction between major and minor derogs.

30-day lates are minor derogs.

60+ lates become major.  And a CO or a CA is the same as a major derog, and usually much harder to deal with, for they then bring the FDCPA into the resolution process,

 

 

 

Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
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Re: CC util FICO thresholds?

[ Edited ]

RobertEG wrote:

Clean and dirty credit reports are based on the distinction between major and minor derogs.

30-day lates are minor derogs.

60+ lates become major.  And a CO or a CA is the same as a major derog, and usually much harder to deal with, for they then bring the FDCPA into the resolution process,

 

 

 


30 day lates are not minor for everyone.  People with high scores can see a substantial decrease. Statement from credit.com

 

 

Please keep in mind that while you are earning the maximum amount of credit score points for this category that you also have the most to lose. If any serious negative information shows up on your credit report then you can expect your score to go down drastically.

But beware, your high credit score could drop dramatically by as much as 100 points if you make a late payment or increase your credit card balances. Keep on managing your credit responsibly!


Message Edited by DI on 10-24-2009 10:52 PM
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TangMeister
Posts: 456
Registered: ‎07-09-2008
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Re: CC util FICO thresholds?

[ Edited ]

I got this a year or so ago, from another credit board.  This graphically illustrates how utilization works for two individual's credit scenarios.  Don't remember the original poster, but it's a good one:

 

http://i494.photobucket.com/albums/rr310/stayingputinca/FICOUtil.jpg

Message Edited by TangMeister on 10-24-2009 10:26 PM
Valued Contributor
Uborrow-Upay
Posts: 2,708
Registered: ‎10-16-2008
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Re: CC util FICO thresholds?

(Just putting in the graphic Tangmeister provided above, from url http://i494.photobucket.com/albums/rr310/stayingputinca/FICOUtil.jpg )

 

Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
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Re: CC util FICO thresholds?

Thanks!  Awesome graphic.
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: CC util FICO thresholds?


DI wrote:


RobertEG wrote:

Clean and dirty credit reports are based on the distinction between major and minor derogs.

30-day lates are minor derogs.

60+ lates become major.  And a CO or a CA is the same as a major derog, and usually much harder to deal with, for they then bring the FDCPA into the resolution process...


30 day lates are not minor for everyone.  People with high scores can see a substantial decrease. Statement from credit.com...



Just as a general FYI, "minor" in RobertEG's sense is referring to the two different categories of delinquencies.

minor = 30 day late, 60 day late after one year (scores as a 30)
major = 60 day late within a year, 90 day, 120 day, CO, CA; all those other fun things.

You're absolutely right, though, that a shiny new 30 can hurt people with high scores very badly. I had a whopping 641 on my FICO Equifax when the-last-late-I-will-ever-have hit, and I lost 50 points, even with that so-so score. I've seen worse hits for those with higher scores. It's not a nice feeling, I can assure you. :smileytongue:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: CC util FICO thresholds?


Uborrow-Upay wrote:

(Just putting in the graphic Tangmeister provided above, from url http://i494.photobucket.com/albums/rr310/stayingputinca/FICOUtil.jpg )

 




Oh, cool, note how on the highest two score lines, there's no penalty for 0% util, but there is for the lower ones! Thanks, Ub-Up and Tangmeister!


marty56, where are you??? :smileyvery-happy:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
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Re: CC util FICO thresholds?


haulingthescoreup wrote:

Uborrow-Upay wrote:

(Just putting in the graphic Tangmeister provided above, from url http://i494.photobucket.com/albums/rr310/stayingputinca/FICOUtil.jpg )

 




Oh, cool, note how on the highest two score lines, there's no penalty for 0% util, but there is for the lower ones! Thanks, Ub-Up and Tangmeister!


marty56, where are you??? :smileyvery-happy:

So does that mean I can let $0 balance report, and still maintain an increase in scores?

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: CC util FICO thresholds?


DI wrote:

So does that mean I can let $0 balance report, and still maintain an increase in scores?


It means that if you (as opposed to anyone else reading this) let 0% UTIL report you might actually see a score increase. You'll have to try it and find out. It's easy enought to reverse the next month if it doesn't work.

 

It also means that very consistently there is no reported change in FICO corresponding to UTIL changes between about 8% and 1%.

 

I wonder is this is chart based on TU98 or an even earler model? The later models used by EQ, EX and even TU may react differently to UTIL changes. Too bad we don't have a chart based on them!  :smileywink:

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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: CC util FICO thresholds?

I'm guessing that since the chart was from 2003, it reflects TU 98. And it does match my experiences with all accounts reporting $0.

DI, the problem is that TU is the only formula that rewards 0% util at higher scores. I still got hit by EQ when all reported $0.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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