topic Fun with negative reason codes in Understanding FICO® Scoring

Fun with negative reason codes

SouthJamaica — Tue, 02 Apr 2019 16:56:48 GMT

I'm really glad @Revelate introduced me to the fun world of paying attention to negative reason codes.

In my EX report 2 revolving accounts, 1 at 35%, the other at 28%, dropped to zero, bringing my overall utilization down from rounded 8% (actual 7.9%) to rounded 6% (actual 5.5%), and the number of accounts with balances down from 11/33 to 9/33. Not surprisingly the FICO 2 score increased by 5 points.

But the fun part is the negative reason codes.

Yesterday there was "High Credit Usage".

Today, in its stead, there is "Not Using Revolving Credit".

Give me a break; is there no middle ground?

It reminds me of the line from "Once and Future King", in the ant colony, where there are signs posted saying "Everything not forbidden is compulsory"

Re: Fun with negative reason codes

DollyLama — Wed, 13 Feb 2019 20:05:16 GMT

It's like saying you had high mileage last month, but didn't drive your car enough.

Re: Fun with negative reason codes

Anonymous — Thu, 14 Feb 2019 03:13:38 GMT

Is Fico ‘incentivizing’ to accrue interest?

Re: Fun with negative reason codes

AllZero — Tue, 02 Apr 2019 09:20:34 GMT

For EX 2, March 1 report, I have both reason codes in 3rd and 4th spot. UTI is 13% rounded. 2/7 accounts with balances. 1/6 revolvers.

High credit usage
You've made heavy use of your available revolving credit.
The FICO® Score evaluates balances in relation to available credit on revolving accounts . The extent of a person's credit usage is one of the most important factors considered by a FICO® Score. People who keep their ratio of balances to credit limits lower are generally considered less risky to lenders than those with higher ratios.
Note, consolidating or moving debt from one account to another will usually not change the total amount owed.

Not using revolving credit
There are no recent balances on your revolving and/or open-ended accounts.
Your credit report shows no recent balances on your revolving and/or open-ended accounts. People with low balances on their revolving and/or open-ended accounts are generally less risky to lenders.

Re: Fun with negative reason codes

SouthJamaica — Tue, 02 Apr 2019 10:51:56 GMT

@AllZero wrote:
For EX 2, March 1 report, I have both reason codes in 3rd and 4th spot. UTI is 13% rounded. 2/7 accounts with balances. 1/6 revolvers.

High credit usage
You've made heavy use of your available revolving credit.
The FICO® Score evaluates balances in relation to available credit on revolving accounts . The extent of a person's credit usage is one of the most important factors considered by a FICO® Score. People who keep their ratio of balances to credit limits lower are generally considered less risky to lenders than those with higher ratios.
Note, consolidating or moving debt from one account to another will usually not change the total amount owed.

Not using revolving credit
There are no recent balances on your revolving and/or open-ended accounts.
Your credit report shows no recent balances on your revolving and/or open-ended accounts. People with low balances on their revolving and/or open-ended accounts are generally less risky to lenders.

The very same day?

Re: Fun with negative reason codes

Revelate — Tue, 02 Apr 2019 13:43:32 GMT

Yeah I got that with my HELOC when it was at 93% or whatever and appears you might be able to get that with all credit union cards even or limits >= 35k as another. Not every tradeline counts in all parts of the algorithm.

What is the revolver you have a balance on AllZero and what balance vs limit on each?

Re: Fun with negative reason codes

AllZero — Fri, 05 Apr 2019 06:13:13 GMT

@SouthJamaica wrote:
The very same day?

Yes. Same day report.

Re: Fun with negative reason codes

AllZero — Fri, 05 Apr 2019 06:25:05 GMT

@Revelate wrote:
Yeah I got that with my HELOC when it was at 93% or whatever and appears you might be able to get that with all credit union cards even or limits >= 35k as another. Not every tradeline counts in all parts of the algorithm.

What is the revolver you have a balance on AllZero and what balance vs limit on each?

Individual CL <35K so should be fine for FICO algorithm.

I forgot to enter the individual UTI. I did too many edits in my previous post before it spam filter locked me out.

PFCU revolver. Individual utility was 5887/10000. 59% rounded.

Re: Fun with negative reason codes

Revelate — Fri, 05 Apr 2019 06:56:02 GMT

@AllZero wrote:
@Revelate wrote:
Yeah I got that with my HELOC when it was at 93% or whatever and appears you might be able to get that with all credit union cards even or limits >= 35k as another. Not every tradeline counts in all parts of the algorithm.

What is the revolver you have a balance on AllZero and what balance vs limit on each?
Individual CL <35K so should be fine for FICO algorithm.

I forgot to enter the individual UTI. I did too many edits in my previous post before it spam filter locked me out.

PFCU revolver. Individual utility was 5887/10000. 59% rounded.

Goes to my working theory that CU cards (or some) are excluded: EX FICO 2 absolutely excluded my DCU tradelines from the revolving activity metric and like you that's how I had both high credit usage and no revolving activity on my report at the same time.

SJ had a slew of CU accounts and wind up with that too, I don't recall what they all were but moral of the story is when your FICO score counts and absolutely when chasing a mortgage, do AZEO on a national bankcard, of 25k or less limit or whatever to be absolutely safe.

Re: Fun with negative reason codes

SouthJamaica — Fri, 05 Apr 2019 11:38:16 GMT

@Revelate wrote:
@AllZero wrote:
@Revelate wrote:
Yeah I got that with my HELOC when it was at 93% or whatever and appears you might be able to get that with all credit union cards even or limits >= 35k as another. Not every tradeline counts in all parts of the algorithm.

What is the revolver you have a balance on AllZero and what balance vs limit on each?
Individual CL <35K so should be fine for FICO algorithm.

I forgot to enter the individual UTI. I did too many edits in my previous post before it spam filter locked me out.

PFCU revolver. Individual utility was 5887/10000. 59% rounded.

Goes to my working theory that CU cards (or some) are excluded: EX FICO 2 absolutely excluded my DCU tradelines from the revolving activity metric and like you that's how I had both high credit usage and no revolving activity on my report at the same time.

SJ had a slew of CU accounts and wind up with that too, I don't recall what they all were but moral of the story is when your FICO score counts and absolutely when chasing a mortgage, do AZEO on a national bankcard, of 25k or less limit or whatever to be absolutely safe.

To what does your working theory -- that some or all credit unions are excluded -- apply? I.e., from what are they excluded? On EX Credit Works they certainly appear to be counted for number of accounts, utilization percentages, age of accounts, etc. Is it just the "revolving activity metric", and if so what does that mean, if anything, in practical terms for one's scores?

Re: Fun with negative reason codes

Lucifer — Fri, 05 Apr 2019 17:34:23 GMT

One of my negatives lately has been a lack of installment loans like an auto loan.

I guess I should go vehicle shopping?

Re: Fun with negative reason codes

SouthJamaica — Fri, 05 Apr 2019 18:28:43 GMT

@Lucifer wrote:
One of my negatives lately has been a lack of installment loans like an auto loan.

I guess I should go vehicle shopping?

Uhhh... no. Much better to be out of debt than in debt. I don't care what FICO 8 says

Re: Fun with negative reason codes

Revelate — Sat, 06 Apr 2019 17:38:17 GMT

@SouthJamaica wrote:
@Revelate wrote:
@AllZero wrote:
@Revelate wrote:
Yeah I got that with my HELOC when it was at 93% or whatever and appears you might be able to get that with all credit union cards even or limits >= 35k as another. Not every tradeline counts in all parts of the algorithm.

What is the revolver you have a balance on AllZero and what balance vs limit on each?
Individual CL <35K so should be fine for FICO algorithm.

I forgot to enter the individual UTI. I did too many edits in my previous post before it spam filter locked me out.

PFCU revolver. Individual utility was 5887/10000. 59% rounded.

Goes to my working theory that CU cards (or some) are excluded: EX FICO 2 absolutely excluded my DCU tradelines from the revolving activity metric and like you that's how I had both high credit usage and no revolving activity on my report at the same time.

SJ had a slew of CU accounts and wind up with that too, I don't recall what they all were but moral of the story is when your FICO score counts and absolutely when chasing a mortgage, do AZEO on a national bankcard, of 25k or less limit or whatever to be absolutely safe.
To what does your working theory -- that some or all credit unions are excluded -- apply? I.e., from what are they excluded? On EX Credit Works they certainly appear to be counted for number of accounts, utilization percentages, age of accounts, etc. Is it just the "revolving activity metric", and if so what does that mean, if anything, in practical terms for one's scores?

Just revolving activity and while I would have to go check it was something like -7 on EX FICO 2... that actually matters if you aren't gold plated as it's nearly half a mortgage tier.

Re: Fun with negative reason codes

Revelate — Sat, 06 Apr 2019 17:39:23 GMT

Sort the lack of installment loans with a share secured loan or whatever, yeah there's some FICO industry options which care if you don't have an auto loan on them but those are wtfever for typical credit products.