Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
Posts: 353
Registered: ‎05-01-2007
0

Re: Utilization: Aggregate Only?

I think your argument is flawed.   People do have the right to max out their cards, they just have to suffer the credit consequences of doing so.  Until bad credit is punishable by incarceration or death, I don't think your argument is going to hold much weight. 

 

And I used to work in deaf relay (telephone services for the deaf), I have relayed pleeenty of conversations between bill collectors and the deaf and hard of hearing. 

2011: EQ 580~
2012: EQ 620~
2013: EQ 641, TU98 645, TU04 635, TU08 635, EX 648 (lender)
Closed on first home 4/25/13.
Highlighted
Valued Contributor
Posts: 2,669
Registered: ‎06-05-2008
0

Re: Utilization: Aggregate Only?


axxy wrote:

In any case, it turns out that it really is aggregate after all.  So this whole argument is meaningless... 


Ah...  I apologize, I thought that question had been answered in previous posts.  If I understand it correctly, there are two key metrics related to scoring utilization:

 

  1. Overall Utilization (an aggregate, as you stated).

  2. Number of accounts with balances.

 

There is a neat graph posted here in the forums that shows utilization as an aggregate and it's effect on various credit profiles.  

 

Interestingly enough, it appears your credit score is working just the way you would like it to.  Once your payment history improved, you rocketed into the 800's.  And showing a balance only dropped you a few points.  Really, even with the slightly lower score you qualify for virtually any offer. Your wish for credit scores to be based on payment history is granted.

 

You're also right that it affects your profile more if you have derogatory accounts.  What I've found in personal experience is that if your file shows perfect payment history and no derogatory accounts, your score will remain high even when posting balances.  There is another way to manage utilization...  Most scoring algorithms do not include Charge Cards in utilization scoring.  So if you want to post balances and pay in full automatically, you might consider a charge card instead of a revolver.

 

As far as freedom and transparency, that's really what this site is all about.  We are all working together to take the veil off of the scoring algorithms, and decode the workings behind the curtain.  I'm all for government protecting us from corporate tyranny, but my love of freedom prevents me from agreeing with total governmental control over credit scoring.  It would be nice if the government had a clear, concise, reasonable scoring guide.  But I've seen enough governmental programs to know that if you let them regulate it, it will be a stinking pile of red tape, full of payoffs and gotcha's slipped in to pacify banking lobbyists and impossible to change.  If you think the CB's are bad, imagine what it would be like if the government ran it.  No thank you.

 

 

3-26-15: FICO EXP: 828 - EQU:820 - TRAN: 828 - AVG: 825 +275 points from JUN 2008 - MY CREDIT JOURNAL

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 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.

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.