Credit Card Center Advertiser Disclosure

Reply
Moderator
Posts: 17,442
Registered: ‎12-30-2011
0 Kudos

FICO 8 Auto Enhanced funsy reason code

[ Edited ]

We've theorized on some industry options and how they weight things differently, but this beauty is from EQ FICO 8 Auto Enhanced (AU):

 

You have no recent activity from an auto loan.

 

This was from my January 1 pull which I just hadn't noticed previously; interesting enoughly in my zero balances test there's an identical reason code for revolving utilization, but it's a likely confirmation that all installment loans may not be created equally, at least on industry options.

 

Was in #4 slot so not hugely major, but considering it's on a file with both lates and a tax lien, it's more relevant than some reason codes.  Somewhat interestingly it's not on FICO 9 AU, there my mortgage or non-mortgage loans are too high apparently kicks it out of the top 4, and FICO 5 AU complains about a CFA.

 

ETA: It is on TU FICO 04 AU, it is not on TU FICO 8/9 AU.  Was nowhere on Experian.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Senior Contributor
Posts: 6,359
Registered: ‎04-11-2016
0 Kudos

Re: FICO 8 Auto Enhanced funsy reason code


Revelate wrote:

We've theorized on some industry options and how they weight things differently, but this beauty is from EQ FICO 8 Auto Enhanced (AU):

 

You have no recent activity from an auto loan.

 

This was from my January 1 pull which I just hadn't noticed previously; interesting enoughly in my zero balances test there's an identical reason code for revolving utilization, but to my knowledge this is the first confirmation that all installment loans may not be created equally, at least on industry options.

 

Was in #4 slot so not hugely major, but considering it's on a file with both lates and a tax lien, it's more relevant than some reason codes.  Somewhat interestingly it's not on FICO 9 AU, there my mortgage or non-mortgage loans are too high apparently kicks it out of the top 4, and FICO 5 AU complains about a CFA.

 

ETA: It is on TU FICO 04 AU, it is not on TU FICO 8/9 AU.  Was nowhere on Experian.

 


Interesting.  I don't like the language used personally.  I'm assuming you don't have a current open auto loan.  The verbiage in my opinion should be almost exactly that, such as "no current open auto loan" if that's being factored into the score.  "Activity" to me suggests more about usage or balance change.  Like "no recent revolving credit use" doesn't mean someone doesn't have an open credit card, just that they didn't report a balance.  No activity with an auto loan to me suggests perhaps that the balance isn't changing.  Take my auto loan for example.  My monthly payment is $250 but I always pay $400.  As a result, my loan is paid through January 2018 now so my monthly payment is always $0.  So, if I want to skip a month I can... which to me would mean "no recent activity from an auto loan" that month if nothing changes with respect to the balance.  I don't know, I just find that reason code a bit misleading in the way it's presented.

 

Valued Contributor
Posts: 2,090
Registered: ‎04-01-2015
0 Kudos

Re: FICO 8 Auto Enhanced funsy reason code

[ Edited ]

I have seen that reason statement on Auto EX Fico 98 when I tested 100% B/HB on my AMEX charge card which dropped my EX 98 scores. That condition was present on both July and August pulls. Interestingly, in August, AMEX was the only card reporting a balance - and I had "no recent balances on your revolving accounts".

 

I believe the card is looked at individually for utilization B/HB (top reason statement) but does not count toward # revolving credit accounts (bottom reason statement). See below.

 

 

 

EX AUTO reason statements.jpg

 

According to the MyFico simulator I can get a new $50 k auto loan and my Classic Fico 8 score won't go down. Based on the above, my Auto scores should go up. Interestingly, the VS 3 simulator shows my score increasing with a new, open, auto loan. I guess the new account and a high B/L ratio won't hurt my profile but the added account/account type would help. I believe these predictions would prove accurate. The older Classic, non Auto enhanced, Fico algorithms would likely look favorably on an open Auto loan as well - IMO.

Fico 8: .......EQ 850 TU 850 EX 850 (3/2017)
Fico 9: .......EQ 850 TU 850 EX 850 (3/2017)
Fico 4 .....:. EQ 804 TU 823 EX 830 (3/2017) EX Fico 98: 839 (3/2017)
VS 3.0:...... EQ 832 TU 832 EX 832 (3/2017)
Fico 8 BC:. EQ 887 TU 899 EX 900 (3/2017)
CBIS: ........LN Auto 940 LN Home 870 TU Auto 902 TU Home 950 (4/2017)
Moderator
Posts: 17,442
Registered: ‎12-30-2011
0 Kudos

Re: FICO 8 Auto Enhanced funsy reason code

[ Edited ]

Thomas_Thumb wrote:

I have seen that reason statement on Auto EX Fico 98 when I tested 100% B/HB on my AMEX charge card which dropped my EX 98 scores. Interestingly, in August AMEX was the only card reporting a balance - see reason #4 no recent balances on your revolving accounts. I believe the card is looked at individually for utilization B/HB but does not count toward # revolving credit accounts. See below.

 

 

 

EX AUTO reason statements.jpg


Good to know, thanks!  I hadn't seen this in the published reason codes for FICO 04, though I know you've looked at them too and the fact it's on my TU 04 suggests it may be there in some form or fashion on all of them.

 

Not sure what to make of the blanket "balances on mortgage or non-mortgage loans are too high" reason code that is clearly around too in addition to this one.  Credit mix vs. installment utilization perhaps being explicitly two different categories as this forum has sort of gone back and forth on, and perhaps different types of loans factoring into credit mix though least the assumption was on FICO 04 at least that credit mix was all accounts open or closed. 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Moderator
Posts: 17,442
Registered: ‎12-30-2011
0 Kudos

Re: FICO 8 Auto Enhanced funsy reason code


BrutalBodyShots wrote:

Revelate wrote:

We've theorized on some industry options and how they weight things differently, but this beauty is from EQ FICO 8 Auto Enhanced (AU):

 

You have no recent activity from an auto loan.

 

This was from my January 1 pull which I just hadn't noticed previously; interesting enoughly in my zero balances test there's an identical reason code for revolving utilization, but to my knowledge this is the first confirmation that all installment loans may not be created equally, at least on industry options.

 

Was in #4 slot so not hugely major, but considering it's on a file with both lates and a tax lien, it's more relevant than some reason codes.  Somewhat interestingly it's not on FICO 9 AU, there my mortgage or non-mortgage loans are too high apparently kicks it out of the top 4, and FICO 5 AU complains about a CFA.

 

ETA: It is on TU FICO 04 AU, it is not on TU FICO 8/9 AU.  Was nowhere on Experian.

 


Interesting.  I don't like the language used personally.  I'm assuming you don't have a current open auto loan.  The verbiage in my opinion should be almost exactly that, such as "no current open auto loan" if that's being factored into the score.  "Activity" to me suggests more about usage or balance change.  Like "no recent revolving credit use" doesn't mean someone doesn't have an open credit card, just that they didn't report a balance.  No activity with an auto loan to me suggests perhaps that the balance isn't changing.  Take my auto loan for example.  My monthly payment is $250 but I always pay $400.  As a result, my loan is paid through January 2018 now so my monthly payment is always $0.  So, if I want to skip a month I can... which to me would mean "no recent activity from an auto loan" that month if nothing changes with respect to the balance.  I don't know, I just find that reason code a bit misleading in the way it's presented.

 


I think it depends how it's being measured which we really don't know, and I would argue language is just semantics anyway... shorter reason codes were the name of the game back in the day when infrastructure had a higher cost FWIW.

 

I never saw that before when I had an auto loan and I floated my balances well out, presumably any non-zero auto-loan balance that's updated within the last six months qualifies would be my blase assumption.  Unfortunately the fact I never saw it before with my heinously unsexy file (PR + deliquency + shortish history) doesn't mean much, I almost assuredly had too many other problems to worry about on my file.  

 

 

Maybe at some point when you get closer to paid off where the interest is pretty irrelevant, and on your much cleaner file which has a higher chance of getting this reason code, play with it?

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Highlighted
Senior Contributor
Posts: 6,359
Registered: ‎04-11-2016
0 Kudos

Re: FICO 8 Auto Enhanced funsy reason code

Good idea.  About a year from now I'll try to remember to test it out.

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.