topic Does VS 3.0 model ignore very low utilization? in Understanding FICO® Scoring

Does VS 3.0 model ignore very low utilization?

Anonymous — Thu, 01 Nov 2018 18:22:59 GMT

Not that I care about VS 3.0 scores at all, but I found this interesting. We all know that when it comes to FICO scoring, any reported balance on a single revolver even if it's just a few bucks constitutes revolving credit use and allows one to escape the no revolving credit use penalty.

Does anyone know if with VS 3.0 there's some sort of minimum? Allow me to explain what I saw with my file. 2 CK updates ago on TU my score was 836 and that was with AZEO and a balance of a few thousand dollars on a high limit card (say 5% of the card limit, aggregate 1%). On the next update, that card had reported $0 and a $3 balance reported on a different card. So, I'm still at AZEO, except with a $3 reported balance. -13 to the TU score, 823. Today I saw that another card of mine reported balance on TU of around $100, +13 points back to 836. It's worth noting that I'm at AZE2 now, but if the $3 balance is being "ignored" it could be seen as AZEO still I suppose.

Any thoughts on this outside of the standard VS 3.0 scores dont matter and their algorithm is screwy anyway?

Re: Does VS 3.0 model ignore very low utilization?

Anonymous — Thu, 01 Nov 2018 18:47:12 GMT

I'd be interested to find out. 😊

Re: Does VS 3.0 model ignore very low utilization?

FireMedic1 — Thu, 01 Nov 2018 19:20:44 GMT

Recently my score changed with AZE2 and balance decreases. The new time line on CK named "See whats Changed" shows a history now and it goes back a long way. When it went back to AZEO. There was no change back. It stayed the same. YMMV. First time I went AZE2 for 2 months straight with 7 cards at 1% util. Back in july same thing with only AZEO. The Discover was a transfer of my CL when I opened my 2cd card in June

Re: Does VS 3.0 model ignore very low utilization?

Thomas_Thumb — Sat, 03 Nov 2018 13:29:29 GMT

@Anonymous wrote:
Not that I care about VS 3.0 scores at all, but I found this interesting. We all know that when it comes to FICO scoring, any reported balance on a single revolver even if it's just a few bucks constitutes revolving credit use and allows one to escape the no revolving credit use penalty.

Does anyone know if with VS 3.0 there's some sort of minimum? Allow me to explain what I saw with my file. 2 CK updates ago on TU my score was 836 and that was with AZEO and a balance of a few thousand dollars on a high limit card (say 5% of the card limit, aggregate 1%). On the next update, that card had reported $0 and a $3 balance reported on a different card. So, I'm still at AZEO, except with a $3 reported balance. -13 to the TU score, 823. Today I saw that another card of mine reported balance on TU of around $100, +13 points back to 836. It's worth noting that I'm at AZE2 now, but if the $3 balance is being "ignored" it could be seen as AZEO still I suppose.

Any thoughts on this outside of the standard VS 3.0 scores dont matter and their algorithm is screwy anyway?

I do know VantageScore is a bit unusual regarding utilization. Optimum utilization for score is in a narrow band between 4.5% and 4.9% as I recall. I provided the below graph previously from the VS simulator in CK. My real world scores behaved in a similar fashion. Earlier this year I looked UT% in 0.1% increments in the 3.5% to 5.5% range and its impact on VS3 score. I cant find the data but the peak score occurred in a narrow band (4.7% to 5.0% or thereabouts).

Although you don't like the simulator, I'd suggest adjusting your balance with all else being equal and look at the results.

...

Re: Does VS 3.0 model ignore very low utilization?

Anonymous — Sat, 03 Nov 2018 13:45:25 GMT

Interesting question and replies. Confess until you raised the point, I had not inquired on VS 3.0. May be time to observe.

Re: Does VS 3.0 model ignore very low utilization?

Trudy — Sat, 03 Nov 2018 16:40:15 GMT

I reached my optimal score on VS3 with one card reporting at less than 1% of available credit for 8 cards. I had high credit card debt in early 2016 and purposed to bring it $0. When I finally joined MyFico I was down to $0 out of 73K+. Then I let one account report for $148 and achieved my highest score - 832. I had a MTG with 23% paid and an auto loan with 40% paid. When I finally found the courage to report 2 cards (total $568) my VS3 dropped a few points but my FICO score was on the rise.

For me (if there are also profiles with VS3) it doesn't like me reporting much more that $500 on 1 card.

Re: Does VS 3.0 model ignore very low utilization?

Anonymous — Sun, 04 Nov 2018 04:02:04 GMT

Interesting TT, good to know. This was the first time I've ever observed a score drop from ultra low (but non-zero) reported utilization on VS 3.0, but I definitely don't monitor those scores much at all and for all I know have received the same score penalty in the past and just wasn't aware.