topic Re: Highest inst. loan util with "perfect" score? in Understanding FICO® Scoring

Highest inst. loan util with "perfect" score?

Anonymous — Thu, 02 Feb 2017 03:19:15 GMT

Are there any data points out there on if a perfect score can be obtained with an installment loan at > single-digit utilization? If not, perhaps a few people could chime in on their data points of their near-perfect scores and what percentage utilization was on their installment loan.

I'm assuming all other factors here are perfect, such as 1% aggregate utilization on revolvers, no new lines of credit recently opened, etc.

Re: Highest inst. loan util with "perfect" score?

Anonymous — Thu, 02 Feb 2017 03:39:36 GMT

TT, Revelate, and others can correct me if I am wrong, but I am pretty sure there's been several people scoring 850 who's only open loan is a mortgage, and who have a fairly healthy installment utilization, e.g. 67% say.

This is why there's been speculation that FICO may give you maximum IU scoring points for a mortgage loan at a much higher IU than (say) a personal loan. In short, you can get an 850 with a 67% mortgage whereas the same profile would need an IU of 9% if the mortgage was instead a personal loan.

I just made up all those numbers but I think there's been several people along those lines. Anybody remember the details?

Re: Highest inst. loan util with "perfect" score?

Anonymous — Thu, 02 Feb 2017 11:26:04 GMT

Cool. Good to know as I have a long way to go on my mortgage Not that my goal is to ever achieve a "perfect" score, but it's good to know that with a mortgage as opposed to another type of installment loan that a higher score is a possibility.

It would definitely be nice to hear from those with installment loans and their utilization percentages on those loans relative to their perfect or near perfect scores.

Re: Highest inst. loan util with "perfect" score?

JLK93 — Thu, 02 Feb 2017 13:14:19 GMT

bada_bing and a couple of others have had 850 with mortgage loans slightly under 80%. bada_bing also had youngest account older than 1 year. my-own-fico had an 850 at 95% with youngest account over 1 year old.

Re: Highest inst. loan util with "perfect" score?

Anonymous — Fri, 03 Feb 2017 00:30:28 GMT

With these type of profiles, what type of score gain is typically realized when crossing from youngest account being < 1 year to > 1 year? I know that crossing the 1 year mark in this category results in rebucketing, but I'm curious how many points on a solid profile this would equate to. It could be 5 or it could be 30, I really have no idea on this subject so any guesses would be insightful.

Re: Highest inst. loan util with "perfect" score?

JLK93 — Fri, 03 Feb 2017 00:46:40 GMT

@Anonymous wrote:
With these type of profiles, what type of score gain is typically realized when crossing from youngest account being < 1 year to > 1 year? I know that crossing the 1 year mark in this category results in rebucketing, but I'm curious how many points on a solid profile this would equate to. It could be 5 or it could be 30, I really have no idea on this subject so any guesses would be insightful.

I think it can generally be in the high teens for FICO 8. When I crossed the 1 year youngest account threshold, most of my score gains were limited because they topped out at the maximum scores.. However, my Experian Auto Enhanced increased 19 points. A few months ago someone else mentioned getting a similar increase. I'll see if I can find the thread.

Actually, most of my FICO 9 Enhanced scores decreased by about 15 points.

There aren't many data points for the 1 year youngest account threshold. Most posters are too busy apping for new cards.

Edit: FICO 9 data added.

Re: Highest inst. loan util with "perfect" score?

Anonymous — Fri, 03 Feb 2017 02:42:08 GMT

When you crossed over the 1 year mark, how were your scores at the time and was your file clean? What was your AAoA and AoOA? I'm wondering if the point gain is more or less significant as profile strength increases... meaning would someone with a thinner, younger file with say a 700 score realize a greater gain than someone with a thicker, older file and an 800 score (naturally different buckets here)? As you suggested though, there probably aren't a lot of data points since the majority of forum members here probably don't garden for a year with all the apping that takes place!

Re: Highest inst. loan util with "perfect" score?

JLK93 — Fri, 03 Feb 2017 03:04:02 GMT

I've never seen any data points for 700 scores. I couldn't even make a guess. The few posts, by forum members, who have passed this threshold probably were something to the effect of "My Score Just Increased by 16 Points and I Don't Know Why".

When I passed the 1 year youngest account threshold, my AAoA was over 10 years. All my FICO classic scores increased to 850. The increases were 7 for TU, 9 for EX and 0 for EQ. I would have probably picked up more points, but my scores topped out at 850.

The interesting thing is that I achieved an 850 on Experian with 2 scoreable HPs and an 850 on Transunion with 3 scoreable HPs.

My reports were clean.

my-own-fico said that he picked up ~18 points on 2 CRAs when he passed the 1 year youngest account threshold.

BTW, NFCU is changing its field of membership, on February 6th, to allow membership for all honorably discharged veterans.

Re: Highest inst. loan util with "perfect" score?

Anonymous — Fri, 03 Feb 2017 13:01:23 GMT

So it seems the constraint to your point gain(s) is the 850 cap. That said, there's no real way to know how much you potentially could have gained.

I'd very much like to see some results from people with lower scores. There are probably far less of these people out there though and as you said most probably don't even realize it when they get one of those score increase alerts.

When you say scoreable HPs, what do you mean? Are they HPs inside the last year that didn't result in new account(s) being opened (like HP CLIs) or are they HPs that are on your credit report that are greater than 1 year old but haven't hit the 2 year mark yet? I believe 1+ year old HPs are not scoreable, though, so I'm assuming the HPs you are speaking of are inside the last year but didn't result in new accounts?

Re: Highest inst. loan util with "perfect" score?

JLK93 — Fri, 03 Feb 2017 13:32:03 GMT

@Anonymous wrote:
So it seems the constraint to your point gain(s) is the 850 cap. That said, there's no real way to know how much you potentially could have gained.

When you say scoreable HPs, what do you mean? Are they HPs inside the last year that didn't result in new account(s) being opened (like HP CLIs) or are they HPs that are on your credit report that are greater than 1 year old but haven't hit the 2 year mark yet? I believe 1+ year old HPs are not scoreable, though, so I'm assuming the HPs you are speaking of are inside the last year but didn't result in new accounts?

You are correct. There is no way of determining how many points I might have gained on the FICO Classic scores. I can only make a guess. Since my Experian Auto Enhanced score increased 19 points, it is conceivable that the FICO Classic scores would have experienced similar gains if not for the 850 cap.

By scoreable HPs, I meant HPs in the last year that are not deduped. Most of these HPs were for new accounts. The reason I said it was interesting is because it doesn't seem possible to have an 850 score with youngest account <1year and more than 1 HP. In fact, for my profile, I'm not sure it is possible to get passed 849 on TU with youngest account <1 year.

Re: Highest inst. loan util with "perfect" score?

Anonymous — Fri, 03 Feb 2017 14:08:01 GMT

If the HPs were for new accounts, doesn't that make your youngest account < 1 year? Maybe I'm reading what you're saying incorrectly?

Re: Highest inst. loan util with "perfect" score?

JLK93 — Fri, 03 Feb 2017 14:24:07 GMT

@Anonymous wrote:
If the HPs were for new accounts, doesn't that make your youngest account < 1 year? Maybe I'm reading what you're saying incorrectly?

I had 2 HPs from Chase in September of 2015. Both HPs were for new account apps. One was declined. The other resulted in a new account that was opened on September 19th of 2015. FICO scores the account as though it was opened on Septemer 1st. On September 1st of 2016, my youngest account aged to 1 year. FICO scores the HPs according to the actual date of occurance. So, on September 1st I still had 2 Experian HPs.

On TU I still had 3 HPs. 1 was for membership in NFCU and 2 were for CLIs. On Transunion, with youngest account <1 year and zero HPs, I've never been able to get past 849.

Re: Highest inst. loan util with "perfect" score?

Anonymous — Fri, 03 Feb 2017 15:16:46 GMT

Understood. So there was a period between the 1st and 19th where your youngest account had crossed the year mark while the HPs were still impacting your score for another couple of weeks. Makes sense!

Re: Highest inst. loan util with "perfect" score?

newhis — Fri, 03 Feb 2017 16:22:08 GMT

My DW newest account now is older than 1 year and there was not a possitve change, I guess other factors on her report interfered.

Re: Highest inst. loan util with "perfect" score?

JLK93 — Fri, 03 Feb 2017 16:26:03 GMT

@newhis wrote:
My DW newest account now is older than 1 year and there was not a possitve change, I guess other factors on her report interfered.

When did her youngest account age to 1 year? Are her reports clean? Youngest account aging to 1 years is only a rebucketing event for clean files. There might possibly be a score increase for dirty files, but that is uncertain.

Re: Highest inst. loan util with "perfect" score?

newhis — Fri, 03 Feb 2017 16:31:59 GMT

@JLK93 wrote:
When did her youngest account age to 1 year? Are her reports clean? Youngest account aging to 1 years is only a rebucketing event for clean files. There might possibly be a score increase for dirty files, but that is uncertain.

Dec/2016.

Clean reports.

Maybe the score increase is only for dirty files. Thank you.

Re: Highest inst. loan util with "perfect" score?

JLK93 — Fri, 03 Feb 2017 16:36:15 GMT

@newhis wrote:
@JLK93 wrote:
When did her youngest account age to 1 year? Are her reports clean? Youngest account aging to 1 years is only a rebucketing event for clean files. There might possibly be a score increase for dirty files, but that is uncertain.
Dec/2016.
Clean reports.
Maybe the score increase is only for dirty files. Thank you.

Rebucketing can result in a score increase or decrease. Her possible rebucketing and score change would have come on December 1st. Did her scores change at that time?

Re: Highest inst. loan util with "perfect" score?

newhis — Fri, 03 Feb 2017 17:00:12 GMT

She only has access to free tools, no daily scores, her FICO scores:

TU mid Nov 800, mid Dec 793.

EX mid Nov 792, late Nov 797, mid Dec 784, 3 days later 800, late Dec back to 784.

Re: Highest inst. loan util with "perfect" score?

JLK93 — Fri, 03 Feb 2017 18:04:20 GMT