topic Re: [Update 9/3] Car loan & installment loan thresholds in Understanding FICO® Scoring

[Final update 12/11] Car loan & installment loan thresholds

SouthJamaica — Mon, 12 Dec 2016 03:25:51 GMT

As my scores got optimized for the bucket I'm in, I decided to buy a new car, and to pick up a few nice cards before my scores got tanked by the car loan.

Update 6/5/16, 2:16 PM Car loan, with 87.7% installment utilization, hits my reports.

Update 7/6/16, 3:15 PM Car loan payments drop overall installment utilization to 79.1%.

Update 8/2/16, 11:21 AM Car loan payments drop overall installment utilization to 68.8%

Update 9/2/16, 10:01 PM Car loan payments drop overall installment utilization to 58.4%

Update 10/5/16. 7:58 AM. Down to 39%

Update 11/5/16, 5:35 PM. Down to 9%

Update 12/11/16, 10:25 PM. Paid off auto loan, SSL remains at 7.5%.

Re: My scores peaking, the calm before the storm

surferchris — Tue, 26 Apr 2016 00:13:52 GMT

Congrats.

Re: My scores peaking, the calm before the storm

SouthJamaica — Tue, 26 Apr 2016 01:20:29 GMT

@surferchris wrote:
Congrats.

Thanks Chris

Re: My scores peaking, the calm before the storm

Revelate — Tue, 26 Apr 2016 03:19:35 GMT

Other than losing the installment loan benefit of the Alliant reindeer games, isn't going to hurt that badly.

Out of curiosity what are your negatives? Noticed you have a correspondingly much higher FICO 9 set of scores in your signature, my apologies if your profile has (likely) been well documented elsewhere.

Re: My scores peaking, the calm before the storm

SouthJamaica — Tue, 26 Apr 2016 03:53:02 GMT

@Revelate wrote:
Other than losing the installment loan benefit of the Alliant reindeer games, isn't going to hurt that badly.

Out of curiosity what are your negatives? Noticed you have a correspondingly much higher FICO 9 set of scores in your signature, my apologies if your profile has (likely) been well documented elsewhere.

The things that seems to get the most criticism from the FICO 8 algorithm are those clustering around the newness of my credit history (average age young, most recent account quite recent, etc) and large number of inquiries, which Tom_Thumb opined are factors receiving significantly less disapprobation in 9 than in 8, and 1 old public record which should fall off later this year, moving me into a 'clean' bucket.

The factors which FICO announced, rental history, small collections, medical collections, are not relevant to my profile as I haven't had any collections or rental history in decades.

Re: My scores peaking, the calm before the storm

Grafton88 — Sun, 01 May 2016 04:18:59 GMT

I will be interested is seeing how your scores change. I am in the garden until September when I will also buy a new car. My scores should be in the mid-seven hundreds by then. I plan to get one new CC(Lowes) at the same time. My current AAoA is only 7 months.

I don't mind taking the temporary hit as I really need a new car and the Lowes card is one I want for when I buy a house next year. I just want to see the hit I will take and the recovery time.

Congrats on your new car and cards.

P.S. My EX score jumped 28 points when I paid my secure loan down under 9%. I hope that isn't the kind of hit I will take with a new loan.

Re: My scores peaking, the calm before the storm

RonM21 — Sun, 01 May 2016 11:44:06 GMT

Congrats! I wonder how much they'll drop? Even if so, I'd think they'll rebound within months.

Re: My scores peaking, the calm before the storm

elim — Sun, 01 May 2016 12:05:44 GMT

@SouthJamaica wrote:
As my scores got optimized for the bucket I'm in, I decided to buy a new car, and to pick up a few nice cards before my scores got tanked by the car loan.

Now I'm firmly in the garden for a long while; I certainly don't need any more credit cards, and I'm just praying I don't get hit with too much adverse action.

I'm sure my scores will be back down in the 600's within weeks, if not sooner.

lol (laughing at myself), every few months I make a change (or 3) to my profile which makes me VERY nervous for awhile. Can't sweat it when we play this game. Just keep utilization in check and wait it out. I'm at the point now i'm second guessing closing the cards that are in the plan thinking it may affect some internal score, somewhere.

I bet you don't take much hit at all. My last card actually increased my scores.

Best of Luck :]

Re: My scores peaking, the calm before the storm

Revelate — Sun, 01 May 2016 19:45:13 GMT

@RM21 wrote:
Congrats! I wonder how much they'll drop? Even if so, I'd think they'll rebound within months.

Unfortunately installment utilization doesn't work that way. Based on my data the drop will equal the gain from crossing both thresholds, I know we can dig out SJ's 9% breakpoint shift, not sure we can for the higher one but mine was explicitly the sum of the two... and yeah, as expected, I didn't recover those points.

Damned mortgage .

Re: My scores peaking, the calm before the storm

SouthJamaica — Sat, 07 May 2016 01:28:34 GMT

Well for good or ill I will update here when the auto loan reports.

According to the FICO 8 Simulator, I should lose 30 points on TU & EX, & 35 points on EQ.

Re: My scores peaking, the calm before the storm

Grafton88 — Sun, 01 May 2016 23:29:22 GMT

Thanks.

I am trying to stagger my loan terms. I will still be paying on my personal loan when I get my auto loan. I will still be paying on my auto loan when I get my mortgage.

It will be interesting to see if that helps.

Re: [Updated] My scores peaking, the calm before the storm

SouthJamaica — Wed, 01 Jun 2016 13:54:09 GMT

At long last, over a month after I did the paperwork for the car loan, the loan hit my EX report.

Unfortunately the loan had already been partly paid down by the time it hit, so that my overall installment loan utilization was at 87.7% (including my share secured loan) when it hit.

So I (a) will never know whether the point drop would have been greater had the loan first reported when it was at 100%, and (b) have not learned whether 90% was a threshold or not. Sorry about that folks.

EX FICO8 dropped 20 points, from 723 to 703.

The FICO8 simulator had predicted 30 point drops on TU & EX, & 35 points on EQ, but the simulator wasn't counting on my loans being 12.3% paid down by the time the car loan registered, which may or may not have softened the blow.

Next up:

1. see what happens to TU and EQ FICO8's,

2. on 6/18 when 3B comes in see what happens to other FICO scores

3. then on to 79%

Re: [Updated] My scores peaking, the calm before the storm

Grafton88 — Wed, 01 Jun 2016 19:05:42 GMT

@SouthJamaica wrote:
At long last, over a month after I did the paperwork for the car loan, the loan hit my EX report.

Unfortunately the loan had already been partly paid down by the time it hit, so that my overall installment loan utilization was at 87.7% (including my share secured loan) when it hit.

So I (a) will never know whether the point drop would have been greater had the loan first reported when it was at 100%, and (b) have not learned whether 90% was a threshold or not. Sorry about that folks.

EX FICO8 dropped 20 points, from 723 to 703.

The FICO8 simulator had predicted 30 point drops on TU & EX, & 35 points on EQ, but the simulator wasn't counting on my loans being 12.3% paid down by the time the car loan registered, which may or may not have softened the blow.

Next up:
1. see what happens to TU and EQ FICO8's,
2. on 6/18 when 3B comes in see what happens to other FICO scores
3. then on to 79%

Congrats on the new car and thanks for providing this information on your scores.

Re: [Updated] My scores peaking, the calm before the storm

Revelate — Wed, 01 Jun 2016 19:08:01 GMT

@SouthJamaica wrote:
At long last, over a month after I did the paperwork for the car loan, the loan hit my EX report.

Unfortunately the loan had already been partly paid down by the time it hit, so that my overall installment loan utilization was at 87.7% (including my share secured loan) when it hit.

So I (a) will never know whether the point drop would have been greater had the loan first reported when it was at 100%, and (b) have not learned whether 90% was a threshold or not. Sorry about that folks.

EX FICO8 dropped 20 points, from 723 to 703.

The FICO8 simulator had predicted 30 point drops on TU & EX, & 35 points on EQ, but the simulator wasn't counting on my loans being 12.3% paid down by the time the car loan registered, which may or may not have softened the blow.

Next up:
1. see what happens to TU and EQ FICO8's,
2. on 6/18 when 3B comes in see what happens to other FICO scores
3. then on to 79%

Refresh my memory please do you recall how much you increased on your share secure loan testing assuming they were clean datapoints?

Mine were identical moves up and down across breakpoints and at the time my file was rigidly held flat through the mortgage process.

Re: [Updated] My scores peaking, the calm before the storm

Anonymous — Wed, 01 Jun 2016 19:09:53 GMT

Congrats & enjoy your new car!

Re: [Updated] My scores peaking, the calm before the storm

SouthJamaica — Wed, 01 Jun 2016 21:22:44 GMT

@Grafton88 wrote:
@SouthJamaica wrote:
At long last, over a month after I did the paperwork for the car loan, the loan hit my EX report.

Unfortunately the loan had already been partly paid down by the time it hit, so that my overall installment loan utilization was at 87.7% (including my share secured loan) when it hit.

So I (a) will never know whether the point drop would have been greater had the loan first reported when it was at 100%, and (b) have not learned whether 90% was a threshold or not. Sorry about that folks.

EX FICO8 dropped 20 points, from 723 to 703.

The FICO8 simulator had predicted 30 point drops on TU & EX, & 35 points on EQ, but the simulator wasn't counting on my loans being 12.3% paid down by the time the car loan registered, which may or may not have softened the blow.

Next up:
1. see what happens to TU and EQ FICO8's,
2. on 6/18 when 3B comes in see what happens to other FICO scores
3. then on to 79%
Congrats on the new car and thanks for providing this information on your scores.

Thanks, Grafton, much appreciated.

Re: [Updated] My scores peaking, the calm before the storm

SouthJamaica — Wed, 01 Jun 2016 21:36:42 GMT

@Revelate wrote:
@SouthJamaica wrote:
At long last, over a month after I did the paperwork for the car loan, the loan hit my EX report.

Unfortunately the loan had already been partly paid down by the time it hit, so that my overall installment loan utilization was at 87.7% (including my share secured loan) when it hit.

So I (a) will never know whether the point drop would have been greater had the loan first reported when it was at 100%, and (b) have not learned whether 90% was a threshold or not. Sorry about that folks.

EX FICO8 dropped 20 points, from 723 to 703.

The FICO8 simulator had predicted 30 point drops on TU & EX, & 35 points on EQ, but the simulator wasn't counting on my loans being 12.3% paid down by the time the car loan registered, which may or may not have softened the blow.

Next up:
1. see what happens to TU and EQ FICO8's,
2. on 6/18 when 3B comes in see what happens to other FICO scores
3. then on to 79%
Refresh my memory please do you recall how much you increased on your share secure loan testing assuming they were clean datapoints?

Mine were identical moves up and down across breakpoints and at the time my file was rigidly held flat through the mortgage process.

I couldn't remember either, had to go back and look. When my share secured loan utilization dropped from 15% to 9% my FICO8 scores picked up

28 points in EX FICO8

25 points in TU

and 33 points in EQ

Pretty bizarre if you ask me.

It was the difference between having a balance of $77 and a balance of $45.

Re: [Updated] My scores peaking, the calm before the storm

SouthJamaica — Wed, 01 Jun 2016 21:35:28 GMT

@Anonymous wrote:
Congrats & enjoy your new car!

Thanks Sandi

Re: [Updated] My scores peaking, the calm before the storm

surferchris — Thu, 02 Jun 2016 04:38:18 GMT

@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:
At long last, over a month after I did the paperwork for the car loan, the loan hit my EX report.

Unfortunately the loan had already been partly paid down by the time it hit, so that my overall installment loan utilization was at 87.7% (including my share secured loan) when it hit.

So I (a) will never know whether the point drop would have been greater had the loan first reported when it was at 100%, and (b) have not learned whether 90% was a threshold or not. Sorry about that folks.

EX FICO8 dropped 20 points, from 723 to 703.

The FICO8 simulator had predicted 30 point drops on TU & EX, & 35 points on EQ, but the simulator wasn't counting on my loans being 12.3% paid down by the time the car loan registered, which may or may not have softened the blow.

Next up:
1. see what happens to TU and EQ FICO8's,
2. on 6/18 when 3B comes in see what happens to other FICO scores
3. then on to 79%
Refresh my memory please do you recall how much you increased on your share secure loan testing assuming they were clean datapoints?

Mine were identical moves up and down across breakpoints and at the time my file was rigidly held flat through the mortgage process.

I couldn't remember either, had to go back and look. When my share secured loan utilization dropped from 15% to 9% my FICO8 scores picked up

28 points in EX FICO8

25 points in TU

and 33 points in EQ

Pretty bizarre if you ask me.

It was the difference between having a balance of $77 and a balance of $45.

Good point gains...

Re: [Updated] My scores peaking, the calm before the storm

CreditMagic7 — Thu, 02 Jun 2016 13:56:07 GMT

@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:
At long last, over a month after I did the paperwork for the car loan, the loan hit my EX report.

Unfortunately the loan had already been partly paid down by the time it hit, so that my overall installment loan utilization was at 87.7% (including my share secured loan) when it hit.

So I (a) will never know whether the point drop would have been greater had the loan first reported when it was at 100%, and (b) have not learned whether 90% was a threshold or not. Sorry about that folks.

EX FICO8 dropped 20 points, from 723 to 703.

The FICO8 simulator had predicted 30 point drops on TU & EX, & 35 points on EQ, but the simulator wasn't counting on my loans being 12.3% paid down by the time the car loan registered, which may or may not have softened the blow.

Next up:
1. see what happens to TU and EQ FICO8's,
2. on 6/18 when 3B comes in see what happens to other FICO scores
3. then on to 79%
Refresh my memory please do you recall how much you increased on your share secure loan testing assuming they were clean datapoints?

Mine were identical moves up and down across breakpoints and at the time my file was rigidly held flat through the mortgage process.

I couldn't remember either, had to go back and look. When my share secured loan utilization dropped from 15% to 9% my FICO8 scores picked up

28 points in EX FICO8

25 points in TU

and 33 points in EQ

Pretty bizarre if you ask me.

It was the difference between having a balance of $77 and a balance of $45.

Incredible swing between percentages no doubt. That is the nature of FICO, bizarre

Congratulations SJ on the new ride