topic Re: To simulator $1k=$100k in Understanding FICO® Scoring

To simulator $1k=$100k

SouthJamaica — Mon, 09 May 2016 02:21:28 GMT

I have a new auto loan which hasn't reported.

I input the auto loan into the FICO 8 simulator, and it indicated a 35 drop in EQ and 30 point drops in EX and TU.

I then reduced the size of the loan to $1000, and then increased the size of the loan to $100,000, and the indications never varied.

Doesn't exactly inspire confidence in the simulator.

Re: To simulator $1k=$100k

Anonymous — Mon, 09 May 2016 03:35:33 GMT

I have yet to find any sort of simulator that predicts more store any closer than 50-60 points of what it actually is... so I have zero confidence in score simulators personally.

Re: To simulator $1k=$100k

JustinA — Mon, 09 May 2016 13:13:02 GMT

I enjoyed the Cap1 simulator...paying down to 2% dropped me 26 points. Paying on time for 24 months dropped 4 points. Apparently I've been rebuilding incorrectly this whole time

Re: To simulator $1k=$100k

SouthJamaica — Mon, 09 May 2016 13:33:23 GMT

@JustinA wrote:
I enjoyed the Cap1 simulator...paying down to 2% dropped me 26 points. Paying on time for 24 months dropped 4 points. Apparently I've been rebuilding incorrectly this whole time

Re: To simulator $1k=$100k

Imperfectfuture — Mon, 09 May 2016 15:15:07 GMT

@JustinA wrote:
I enjoyed the Cap1 simulator...paying down to 2% dropped me 26 points. Paying on time for 24 months dropped 4 points. Apparently I've been rebuilding incorrectly this whole time

You will be rewarded for your indiscretions.

As to the same scoring, an installment loan is the same scoring, regardless of amount (though mortgages are scored in a different bucket, I think). That is why the secured installment reindeer game works.

Re: To simulator $1k=$100k

Thomas_Thumb — Mon, 09 May 2016 20:26:53 GMT

@SouthJamaica wrote:
I have a new auto loan which hasn't reported.

I input the auto loan into the FICO 8 simulator, and it indicated a 35 drop in EQ and 30 point drops in EX and TU.

I then reduced the size of the loan to $1000, and then increased the size of the loan to $100,000, and the indications never varied.

Doesn't exactly inspire confidence in the simulator.

Apparently I need an up-to-date product from MyFICO to use their simulator (I am not a subscriber to a monthly service).

I did give the CK VS 3.0 simulator a try for auto loans - The simulator feels I would benefit from getting a loan [I do have a rather thin file]. Here are the results:

1) Current CK TU VS3 = 829

2) VS3 with $5k loan... = 833

3) VS3 with $10k loan. = 832

4) Vs3 with $15k loan.. = 831

5) VS3 with $25k loan. = 830

6) VS3 with $35k loan. = 829

7) VS3 with $50k loan. = 828

Re: To simulator $1k=$100k

SouthJamaica — Mon, 09 May 2016 21:50:25 GMT

@Thomas_Thumb wrote:
@SouthJamaica wrote:
I have a new auto loan which hasn't reported.

I input the auto loan into the FICO 8 simulator, and it indicated a 35 drop in EQ and 30 point drops in EX and TU.

I then reduced the size of the loan to $1000, and then increased the size of the loan to $100,000, and the indications never varied.

Doesn't exactly inspire confidence in the simulator.
Apparently I need an up-to-date product from MyFICO to use their simulator (I am not a subscriber to a monthly service).

I did give the CK VS 3.0 simulator a try for auto loans - The simulator feels I would benefit from getting a loan [I do have a rather thin file]. Here are the results:

1) Current CK TU VS3 = 829
2) VS3 with $5k loan... = 833
3) VS3 with $10k loan. = 832
4) Vs3 with $15k loan.. = 831
5) VS3 with $25k loan. = 830
6) VS3 with $35k loan. = 829
7) VS3 with $50k loan. = 828

1. Funny you did that. I did that too, today, and according to CK's Vantage 3.0 simulator my Vantage score wouldn't change. I wonder why the massive difference between FICO 8 and Vantage 3.0, and I wonder whether the massive difference will play out when the loan actually hits.

2. I hope you don't use that Vantage simulator as an excuse to go out and get a car you don't need If so, I hope you'll follow Vantage's prudent advice to stick with the cheapest car

Re: To simulator $1k=$100k

Thomas_Thumb — Mon, 09 May 2016 22:16:56 GMT

My car is 10 years old and on average I get a new car every 10 years. However, I can get more points on VS (5 to 7 both according to the simulator and verified with actual data) by increasing my reported CC utilization to 4% from 1%. That I can do quite easily without any lingering debt obligations.

Re: To simulator $1k=$100k

Anonymous — Mon, 09 May 2016 22:29:00 GMT

I actuallly use Experian which will give you updated scores all the time. I like that conceipt better. And I can get all 3 ficos when I want to. And the simulator actually is pretty darn accurate! Almost right on the money. I would definitley think they will be a difference in your scores depending on your loan. We're going for an equity line of credit right after the new year and I'm scared to death what that will do to our scores. Have my eye on the new 2018 BMW X5M down the road.

Re: To simulator $1k=$100k

SouthJamaica — Tue, 10 May 2016 01:36:15 GMT

@Anonymous wrote:
I actuallly use Experian which will give you updated scores all the time. I like that conceipt better. And I can get all 3 ficos when I want to. And the simulator actually is pretty darn accurate! Almost right on the money. I would definitley think they will be a difference in your scores depending on your loan. We're going for an equity line of credit right after the new year and I'm scared to death what that will do to our scores. Have my eye on the new 2018 BMW X5M down the road.

Wow, I didn't realize Experian had a simulator. Thanks for that info

I plugged it in, and got the same result I got in MyFICO: a 35 point drop in FICO 8. And there too the score drop was the same whether the amount of the loan was $1000 or $100,000.

Re: To simulator $1k=$100k

RonM21 — Tue, 10 May 2016 16:22:44 GMT

The simulators can be far off at times, even for the what actually happens on the site your using to monitor your scores. I personally use them at times just to get a general feel.

Re: To simulator $1k=$100k

Anonymous — Fri, 13 May 2016 03:23:13 GMT

I've run it on both MyFICO and Experian and lose only 5 points on both regardless of amount. I assume because my existing installment loans are already close to 100% so adding another wouldn't raise the aggregate utilization. So the 5pts is likely for the inquiry/new account hit. I'll find out what really happens this fall.