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Going from 89% installment utilization to 8.9%, which caused 31 and 37 point gains in FICO 8, meant zero point change in EX FICO 2 and a 13 point gain in TU FICO 4.
Unfortunately I have no data on what the change would have been in EQ FICO 5 because the larger percentage was never reported in the Equifax report.
Interesting that these different FICO models can be so vastly different. I get it that one model may show a 30 point change and another a 10 point change, but to see a zero point change on a model compared to a 30+ point change is somewhat surprising.
When my student loans were consolidated, I went from 100% utilization to 0% and lost 11-13 points across the board on my mortgage scores. When the new accounts were added which put me back at 100% utilization, I saw a slight increase across the board on mortgage scores. Can't remember the range, but it was no more than 10 points.
@Anonymous wrote:Interesting that these different FICO models can be so vastly different. I get it that one model may show a 30 point change and another a 10 point change, but to see a zero point change on a model compared to a 30+ point change is somewhat surprising.
Some of the models showed a 50-point gain:
EX Auto 8 +58
EX Bankcard 8 +56
TU Bankcard 8 +50
TU Auto 8 +46
I'm surprised by the Bankcard score increases, as that model is supposed to be most sensitive to revolver utilization. Interesting that it also seems quite volatile to installment loan utilization. I'd expect that from the Auto scores, but not the Bankcard scores. Good information!
Installment utilization does factor into EX FICO 2. It does not in FICO 04 (TU FICO 4 / EQ FICO 5).
Gory Theory:
http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Installment-tradeline-utilization-thread/...
@Revelate wrote:Installment utilization does factor into EX FICO 2. It does not in FICO 04 (TU FICO 4 / EQ FICO 5).
Gory Theory:
http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Installment-tradeline-utilization-thread/...
Well you won't convince me of either prong of that statement. I dropped installment utilization from 89% to 8.9%, causing EX FICO 8 to go up 31 points, and TU FICO 8 to go up 37 points, while the effect on mortgage scores was as follows:
'
EX FICO 2 didn't budge a single point
TU FICO 4 did go up 13 points
I have no data on what EQ FICO 5 would have done.