Re: Revolving Credit
11-27-2012 09:59 AM
I think it is pretty well established that, with respect to current % util, FICO scores only the (current month balance/credit limit) percentage.
So, in that regard, the actual account balance is not scored. However, % util is but a part of scoring of util of credit.
The fact that actual balances are not scored directly in % util does not necessarily mean that the scoring algorithm does not look at the balance on each account, and overall revolving balance. That, at least in my opinion, would be a logical indication of consumer risk, beyond simple % util.
Since the intricacies of the scoring algoritm are proprietary, one can only opine on whether and to what extent that is done.
What is also a fact is that reporting codes do record monthly balances on each account, which are maintained over a balance history of approx 24 months.
Expanded credit reports will show you that history.
The data for inclusion of prior balance levels is available in consumer credit files. The extent to which FICO might use that data remains, at least to me, a secret within their scoring algorithm.