Credit Card Center Advertiser Disclosure

Reply
Super Contributor
Posts: 6,773
Registered: ‎10-30-2014

EX and cards over 50% Utilization

My EX score is the slowest to change, likes to wait to see what all this noise is from two dozen cards reporting before it makes a move. Things have been stable the last few months, and the general trend is up because of no apping and a general slow decline in balances, though a minor data point does turn up.

 

My Chase Freedom card is $1,500 limit, which makes it easy to ramp up the utilization. With Department Stores, had to use it for some Nordstroms purchases, so Utilization went as follows:

Nov 1 $384 to $836, 25% utilization to 55% utilization, EX score 803 to 800, 3 point drop.

Dec 3 $836 to $259, 55% utilization to 17% utilization, EX score 800 to 806, 6 point gain.

 

This is the only card which crossed 50% recently. Others are at 32% and 38%, and the rest of the amounts are moving around below 10% generally.

 

In mid-2015 as several cards transitioned below 50% each, so all went below 50%, there was a large general increase in all scores. 

 

I am not at all against going over 50% if it makes sense for rewards or to take a low rate BT offer, but there are a few FICO points involved if a card does rise over 50%. It's not the end of the world, just one more nuance to how FICO looks at things.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

7 / 24 counting down to 1 Nov 2017
Contributor
Posts: 89
Registered: ‎07-06-2016
0 Kudos

Re: EX and cards over 50% Utilization

I guess the only thing to remember here is that FICO has no memory when it comes to debt util. It's literally a month to month thing, and whenevr you do get the util down, your score will just reflect that--not the peak util you ever had.

Starting FAKO: 463 (July 2016)
Current FICO: 747 EX, 642 EQ, 613 TU (December 2016)

Can the last two update already?! I have a rebuild to complete.
Super Contributor
Posts: 6,773
Registered: ‎10-30-2014

Re: EX and cards over 50% Utilization

True, FICO does not remember it.

 

The challenge for those of us who had / have debt is, the bank remembers, and until you actually get it paid off, FICO has no choice but to consider it Smiley Tongue

 

The main point of bringing up the 50% topic is that it really is a trigger for score changes. Might not be all the points, but if one is trying to decide where to put resources, that goal of "under 50% on all cards" is worth trying.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

7 / 24 counting down to 1 Nov 2017
Community Leader
Senior Contributor
Posts: 4,754
Registered: ‎07-17-2014
0 Kudos

Re: EX and cards over 50% Utilization

Our friend Brutal Body Shots may be doing a CLD soon so that he can have a $300 CL card, for the primary purpose of testing the individual utilization breakpoints.

Super Contributor
Posts: 6,773
Registered: ‎10-30-2014
0 Kudos

Re: EX and cards over 50% Utilization


CreditGuyInDixie wrote:

Our friend Brutal Body Shots may be doing a CLD soon so that he can have a $300 CL card, for the primary purpose of testing the individual utilization breakpoints.


It's an entertaining gardening activity Smiley Happy

 

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

7 / 24 counting down to 1 Nov 2017
Community Leader
Senior Contributor
Posts: 4,754
Registered: ‎07-17-2014
0 Kudos

Re: EX and cards over 50% Utilization

It is indeed.

 

One thing that will be interesting is if BBS does NOT detect any score hit by going from 5% to 55% on that card.  Interesting because it will not discount your careful evidence that there does appear to be a breakpoint of 50% for you.  You have established that several times in the last year I think.  What it might mean is that FICO may be more generous with not imposing a penalty at 50% (individual) when one's total U is very low (1-5% say).

 

This is a conjecture I picked up from Thomas Thumb, I believe, but it strikes me as a good way to square the two kinds of reports (people who report no score impact and people who report a definite measurable impact).  The people in the first group may be people with an ultra low total U and the people in the second group may have a total U that is higher. 

 

The individual penalty might vary by score card too (dirty vs. clean, say).  BBS is in a dirty scorecard.

 

Remind me what your total U is currently?

Super Contributor
Posts: 6,773
Registered: ‎10-30-2014
0 Kudos

Re: EX and cards over 50% Utilization


CreditGuyInDixie wrote:

It is indeed.

 

One thing that will be interesting is if BBS does NOT detect any score hit by going from 5% to 55% on that card.  Interesting because it will not discount your careful evidence that there does appear to be a breakpoint of 50% for you.  You have established that several times in the last year I think.  What it might mean is that FICO may be more generous with not imposing a penalty at 50% (individual) when one's total U is very low (1-5% say).

 

This is a conjecture I picked up from Thomas Thumb, I believe, but it strikes me as a good way to square the two kinds of reports (people who report no score impact and people who report a definite measurable impact).  The people in the first group may be people with an ultra low total U and the people in the second group may have a total U that is higher. 

 

The individual penalty might vary by score card too (dirty vs. clean, say).  BBS is in a dirty scorecard.

 

Remind me what your total U is currently?


Ok, interesting thoughts. The other metric I would propose to track is, how many cards BBS has reporting any balance. I'm reporting balances on 17 cards out of 24, so 70% of my cards are reporting a balance, only 30% are reporting at zero now. In 2015 when I got them all below 50% individual utilization, virtually all cards were reporting a balance of some kind.

 

My overall utilization, using TU reported items and the associated limits, excluding the one remaining closed account with a balance, is just a shade over 6%, has been there for several months now.

Last app was in March, so about 8 months since the last new account was added.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

7 / 24 counting down to 1 Nov 2017
Highlighted
Community Leader
Senior Contributor
Posts: 4,754
Registered: ‎07-17-2014
0 Kudos

Re: EX and cards over 50% Utilization

VERY helpful point, NRB!  It's possible that people who see no score change at 50% are people who have low utilization and who also have a small number of cards reporting a balance.  (This could be a small percentage of cards or a small number.  You have over 70% reporting a balance and that the actual number of cards is itself high too: 17.)

 

I suppose it is also possible that FICO triggers the more draconian 50% penalty if it sees a large dollar value in total debt.

 

Curious to see what happens as BBS and others test.  (Revelate is doing something similar.)

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.