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Contributor
Juniper117
Posts: 91
Registered: ‎02-02-2010

Util/Score- Inverse Correltion as well?

I lost 20 points just by one CC going from 60% to 90% utilization. (total util from 80 to 90%)

How much inference can be drawn? I will be paying off my 3 CC in January- I know that I'll likely get those 20 points back by 'undoing' the utiliztion increase I just did, but can I make any inference as to if I will get a jump by paying it all off?

In other words, I know some people get a point when they pay it down and some get 60. If I got 20 points just from what I did, can I assume that I'll be one tht gets a big jump when I pay it all to 2% util?

Moderator
pizzadude
Posts: 8,117
Registered: ‎01-28-2010

Re: Util/Score- Inverse Correltion as well?

 

Unfortunately there is really no way to know exactly what will happen to your score.   You will gain points, but we can't predict how many.

 

Also your report in January of next year will not be the same as it is now - other factors will change such as AAoA, or inquiries.

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Util/Score- Inverse Correltion as well?

Mega Contributor
RobertEG
Posts: 17,224
Registered: ‎03-19-2007

Re: Util/Score- Inverse Correltion as well?

[ Edited ]

Since FICO scores both overall and individual card utilizations, the part of the algorithm that scores the impact of individual card usage will most likley ding you at a much higher proportional level for a high util card.  So it is not all about just overall % util.   And it is also why it is not possible to predict score values based only on looking at your overall % util.  You could be at 10-15% overall, and yet have a single card at, say, 50% that had a perceptible impact on individ card util scoring.

 

Also, utilization is not only about percent utilization.  Also entering into the scoring are factors such as percent of cards with balances.  Addititonally, does FICO also consider the actual balances in addititon to simple % util calcullations?  I know that  $100 on a $1000 CL counts, for util purposes, the same as $1000 on a $10000 CL.  But does FICO end there, or does it also somehow factor the overall and individual levels of the debt into the utiization scoring?  I simply dont know.  I would be interested if anyone knows the degree to which scoring is based on $$ balance in addition to simply % util.

 

There are just too many factors and unknowns to do accurate score predictions based on anecdotal experiences of others.

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Util/Score- Inverse Correltion as well?


RobertEG wrote:

Addititonally, does FICO also consider the actual balances in addititon to simple % util calcullations?  I know that  $100 on a $1000 CL counts, for util purposes, the same as $1000 on a $10000 CL.  But does FICO end there, or does it also somehow factor the overall and individual levels of the debt into the utiization scoring?  I simply dont know.  I would be interested if anyone knows the degree to which scoring is based on $$ balance in addition to simply % util.

 

There are just too many factors and unknowns to do accurate score predictions based on anecdotal experiences of others.



FICO does consider individual balances as well. There's a FICO scoring code for having revolving balances too high (or I think it says non-mortgage balances). There might be a couple of codes for that and have been hit by both on the two FICO reports. But I'm very certain that FICO scores far more for util (overall and individual) vs. the overall balances.

 

And I'll add the degree of the damage will vary based on the scoring bucket that person is in. While I gained over 100 on EQ by going from 89% to 1%, someone else with a solid mix of credit might not get the same results. If they look in their FICO report and if util is the #1 reason code, then they stand to gain a herd of points. If util isn't in the top for negative codes, then they won't see a large gain. I recall advising someone that they'd gain nearly the same despite having a near identical situation with mix and util. They only gained 30-40 because they had other items in line before util like PRs, CAs, lates, etc.

Frequent Contributor
GrowingCredit
Posts: 315
Registered: ‎05-28-2011

Re: Util/Score- Inverse Correltion as well?


pizzadude wrote:

 

Unfortunately there is really no way to know exactly what will happen to your score.   You will gain points, but we can't predict how many.

 

Also your report in January of next year will not be the same as it is now - other factors will change such as AAoA, or inquiries.

 


+1

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