topic Re: Does FICO look at OVERALL util or individual per account ? in Credit Cards

Does FICO look at OVERALL util or individual per account ?

Anonymous — Mon, 09 Jun 2008 21:25:41 GMT

Reason I ask this is that when I spoke to someone in the BOA credit department he told me that it's a common misconception that FICO scores are based on individual accounts. He said the only that that matters is your OVERALL utilization (all account balances divided by your total credit lines). So what is the truth ?

Re: Does FICO look at OVERALL util or individual per account ?

Anonymous — Mon, 09 Jun 2008 21:27:32 GMT

He was wrong. BOTH factors are part of the FICO score calculation. And they are about equally important.

Re: Does FICO look at OVERALL util or individual per account ?

MidnightVoice — Mon, 09 Jun 2008 21:29:40 GMT

masdeocho wrote:
He was wrong. BOTH factors are part of the FICO score calculation. And they are about equally important.

Agreed, he knows not of what he speaks. EX keeps dinging me because one of my accounts is nearly maxed out - my Heloc (EX thinks it is a credit card )

Re: Does FICO look at OVERALL util or individual per account ?

Anonymous — Mon, 09 Jun 2008 21:34:17 GMT

He probably wants your to BT a ton over to his bank. Either that or he just wants to sound like he knows what he is talking about.

Re: Does FICO look at OVERALL util or individual per account ?

Anonymous — Mon, 09 Jun 2008 21:36:39 GMT

Two years ago, a customer service representative at Equifax actually told me that they only look at overall utilization. I knew she was wrong, but I didn't try to correct her.

Re: Does FICO look at OVERALL util or individual per account ?

Anonymous — Mon, 09 Jun 2008 21:37:13 GMT

wow..pretty scary that someone in the credit department over at BOA doesn't know the facts then. Thanks for clarifying ! Anyone the actual scoring ? Is it 50% overall util / 50% indivdual account util ? Anyone have that info ?

Re: Does FICO look at OVERALL util or individual per account ?

Anonymous — Mon, 09 Jun 2008 21:41:27 GMT

Its been stated on here that a Fair Isaac rep said it was equally stated. I am sure that could be searched pretty easily.

Re: Does FICO look at OVERALL util or individual per account ?

heirophant — Mon, 09 Jun 2008 21:53:52 GMT

Problem with these theories is that they are just theories. The formula behind FICO scoring is very secretly guarded and unless we get word from one of their mathematical geniouses, I think we can assume whatever we want about utilization and not be correct. Even FICO optimizing software is good at bettering your score, it is just their best guess, too. (There is an article about this in the FICO in the news section. http://ficoforums.myfico.com/fico/board/message?board.id=creditnews&thread.id=1883) Even though everyone on this board says they factor equally, we have no way of actually knowing if that is true or not, just observational points in our FICO score.

Re: Does FICO look at OVERALL util or individual per account ?

marty56 — Mon, 09 Jun 2008 21:56:26 GMT

Both. I feel EX looks more a total and TU might look at indies and # CCs reporting.

Re: Does FICO look at OVERALL util or individual per account ?

MattH — Mon, 09 Jun 2008 22:14:58 GMT

@marty56 wrote:
Both. I feel EX looks more a total and TU might look at indies and # CCs reporting.

I suspect EX looks more at %util, EQ more at total balance, and TU at number of accounts showing a balance, based on my own reports from myfico. My wife and I are heavy convenience users who use very little cash and pay in full every month. Therefore, my number of accounts showing a balance is always the same, while my total balance fluctuates depending on how much we spend. My limits are high enough to keep %utilization quite low. Well, my EX is always between 820 and 830, my TU is always around 790, but my EQ bounces around a little more than the other two (most recently 786).

Also, under factors lowering the score, my EX report says "no actionable negative factors affecting your score," my EQ mentions only the total balance being a tad high, but my TU mentions both my total balance and number of accounts with a balance.

Re: Does FICO look at OVERALL util or individual per account ?

Anonymous — Mon, 09 Jun 2008 22:32:15 GMT

@MattH wrote:

@marty56 wrote:
Both. I feel EX looks more a total and TU might look at indies and # CCs reporting.

I suspect EX looks more at %util, EQ more at total balance, and TU at number of accounts showing a balance, based on my own reports from myfico. My wife and I are heavy convenience users who use very little cash and pay in full every month. Therefore, my number of accounts showing a balance is always the same, while my total balance fluctuates depending on how much we spend. My limits are high enough to keep %utilization quite low. Well, my EX is always between 820 and 830, my TU is always around 790, but my EQ bounces around a little more than the other two (most recently 786).

Also, under factors lowering the score, my EX report says "no actionable negative factors affecting your score," my EQ mentions only the total balance being a tad high, but my TU mentions both my total balance and number of accounts with a balance.

quite interesting. You probably have a great perspective, because as you mentioned, PIF every month.

Re: Does FICO look at OVERALL util or individual per account ?

haulingthescoreup — Tue, 10 Jun 2008 00:50:37 GMT

@Anonymous wrote:
Reason I ask this is that when I spoke to someone in the BOA credit department he told me that it's a common misconception that FICO scores are based on individual accounts. He said the only that that matters is your OVERALL utilization (all account balances divided by your total credit lines). So what is the truth ?

It's possible that he was projecting a BofA standard to FICO scoring. I can see how a lender might look at overall util and not individual to determine credit risk.

It's pretty common for people to analyze their own experience, come to some conclusions, and then project them as some universally applicable rule.

Happens here on the forums all the time!