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Epic Contributor
Posts: 21,275
Registered: ‎03-19-2007
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Re: What is the best scenario for FICO score when it comes to util??

I post on this thread, not because I have anything new of substance to add, but simply to reinforce the comments of the many prior posts.  Many who use the very simplistic FICO simulator are constantly driven to the conclusion, based on the limited number of simulated scenarios, that waiting 3, 6, 12, or even 24 months to pay down revolv debt is better than paying it sooner!  That is simply not true. I concur with the others who have posted on this topic,  &util and payment history are both included in the FICO simulator, so any conclusion that one should wait until the sim period expires to get the best score is simply ignoring the fact that the sim is not a one-category simulator., and is not suggesting that you should do that.  Aging is there, but not just shown separately.
Sure, it would be great if the simulator had many more scenarios that would allow one to see the separate effects of each category, modeled separately, such as the separate effects of both aging and %util.  So why does the simulator not do this for us?  The answer is simple.  If it did so, it would reveal too much about the proprietary FICO algoritm that would allow us to then see how it works in too much detail, and thus allow we who are mathematically inclined to create our own projections without the need to regularly buy their product.... their scores!
Just reading this forum is THE BEST way to plan either credit or FICO score strategy.  The simulator is useful only to tell the masses who dont read this forum to...... pay down %util and dont have lates!  Dah!!!
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