12-07-2012 09:04 AM
Account Name & Number Opened
|LENDING CLUB CORP||9/17/2012|
Account Type Unsecured Loan
Credit Limit : 8000 Balance: 7,621.89
Do utilization on the "unsecured loan" affect the credit score? I ran recommendations in quizzle, which is a FAKO, and its telling me to bring my balance on the loan to 80% of the loan which is 6400.00. For potential raising of 11 pts. Does it still hold true for FICO scoring models?
And also, Does anyone know the impact of scoring on average, for individual Credit card utilization in tiers? like
Citi Credit Card
Credit Limit : 8000 Balance: 4635 Utilization: 57.94%
Thanks in advance.
12-07-2012 09:39 AM
It's not the same for FICO, otherwise you'd see hefty score hits when adding a mortgage or any other loan. When it first reports, it'll always be at 100%. Installment util is a teeny tiny part of FICO scoring. Also ignore Quizzle's reporting. I have a LC loan and your CR from the CRA and your FICO report will list it as an installment.
FICO does look at individual and overall util. The damage varies by credit profile, your mix of credit, scoring bucket, etc. It depends also on that CC's impact to your overall util.
12-07-2012 09:56 AM
I'm guessing nobody figured out the Sub-categories that makes up the Utilization of the Scoring Model (30%).. only thing i found out:
7. Amounts owed
The amount owed on accounts makes up approximately 30% of the weight of the score.
Having credit accounts and owing money on them does not mean the consumer is a high-risk borrower and gets a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile.
This category takes into account: