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VERY interesting info about FICO score points

New Member

Re: VERY interesting info about FICO score points

Thank you very much for the update  jello77 very useful and interesting especially as it says Smiley Wink

Frequent Contributor

Re: VERY interesting info about FICO score points

The "Outstanding Debt" piece cannot be in dollars... It wouldn't make any sense to scale purely the dollar amount... This has got to be a ratio, for example maybe 1000 = 100% util? By that scale, $99 = 9.9%, which lines up with the "ideal" utilization reported by many...

 

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
Valued Contributor

Re: VERY interesting info about FICO score points

The outstanding debt is the average balance on revolving cards.. So if you had $450.00 total revolving debt and 3 cards your average is $150.00. 

Equifax My FICO score 814 11/29/2016, Discover TU FICO 807 12/29/2016 Citibank Equifax Bankcard FICO score 827 12/27/2016 Average of Accounts 13 years and no Installment accounts, 1 TU inquiry in 2015
Frequent Contributor

Re: VERY interesting info about FICO score points


AndySoCal wrote:

The outstanding debt is the average balance on revolving cards.. So if you had $450.00 total revolving debt and 3 cards your average is $150.00. 



I agree that, on the surface, that's what it looks like. But what if you have $100,000 available CL across three cards? Is a $1000 average balance really a reason to drop your score ~50 points? My only point is that util has to be a hidden part of this (very informative) slide.

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
Valued Contributor

Re: VERY interesting info about FICO score points

If I were to carry a large balance  each month I would do so in one of two ways.  For me a large balance is 1000 or greater it may not be to others. If  were to pay in full each month I would use a charge card like AMEX.  A charge card is where the balance is due in full each month.  These cards are reported as account type open and not revolving. Or if I needed to carry a balance I would use a signature VISA that is a no pre set spending limit  these cards ususally report the same way..

Equifax My FICO score 814 11/29/2016, Discover TU FICO 807 12/29/2016 Citibank Equifax Bankcard FICO score 827 12/27/2016 Average of Accounts 13 years and no Installment accounts, 1 TU inquiry in 2015
Moderator Emeritus

Re: VERY interesting info about FICO score points


cassembler wrote:
 


I agree that, on the surface, that's what it looks like. But what if you have $100,000 available CL across three cards? Is a $1000 average balance really a reason to drop your score ~50 points? My only point is that util has to be a hidden part of this (very informative) slide.


I will quote a very high ranking individual at myFICO concerning this:

 

Not only is that a "partial" scorecard, it's fake, and used mainly to illustrate how a scorecard works.  Do they really think we'd put the real deal out there like that? :smileyhappy:

 

In other words this is useless.

Valued Contributor

Re: VERY interesting info about FICO score points


MarineVietVet wrote:

cassembler wrote:
 


I agree that, on the surface, that's what it looks like. But what if you have $100,000 available CL across three cards? Is a $1000 average balance really a reason to drop your score ~50 points? My only point is that util has to be a hidden part of this (very informative) slide.


I will quote a very high ranking individual at myFICO concerning this:

 

Not only is that a "partial" scorecard, it's fake, and used mainly to illustrate how a scorecard works.  Do they really think we'd put the real deal out there like that? :smileyhappy:

 

In other words this is useless.



I'm inclined to agree since according to the chart my FICO score should be impacted only 20 points by having a single 5.5 y/o PR. But when it dropped off my FICO went up 73 points.

 

So in that specific case, the chart was not even close.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Frequent Contributor

Re: VERY interesting info about FICO score points


cashnocredit wrote:

MarineVietVet wrote:

 

I will quote a very high ranking individual at myFICO concerning this:

 

Not only is that a "partial" scorecard, it's fake, and used mainly to illustrate how a scorecard works.  Do they really think we'd put the real deal out there like that? :smileyhappy:

 

In other words this is useless.



I'm inclined to agree since according to the chart my FICO score should be impacted only 20 points by having a single 5.5 y/o PR. But when it dropped off my FICO went up 73 points.

 

So in that specific case, the chart was not even close.


So we're back to square one, that this slide was purely for educational purposes... Kind of like a FAKO Smiley Happy

 

I'm assuming you couldn't *cough* PM me the actual *cough* formula *cough cough*

 

(worth a shot, right?)

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
Moderator Emeritus

Re: VERY interesting info about FICO score points


cassembler wrote:
 

So we're back to square one, that this slide was purely for educational purposes... Kind of like a FAKO Smiley Happy

 

I'm assuming you couldn't *cough* PM me the actual *cough* formula *cough cough*

 

(worth a shot, right?)



I'll *cough* try and do *cough* that as soon as I can.  Smiley Wink

Valued Contributor

Re: VERY interesting info about FICO score points

     Seems reasonable to believe that charges on your card will however make it more likely that cars will raise your credit limit which is one of my credit goals besides raising my fico score.