topic Re: H or L Deg in Understanding FICO® Scoring

H or L Deg

Greenmach — Sat, 19 Dec 2020 18:10:26 GMT

This may be a question that has been answered before but what constitutes a H or L deg? Is it amount owed, type, or something else I'm completely missing?

Re: H or L Deg

OmarGB9 — Sat, 19 Dec 2020 18:53:46 GMT

What is an "H or L deg"?

Re: H or L Deg

Greenmach — Sat, 19 Dec 2020 18:55:40 GMT

I read it on the scorecard post. It showed High or Low? as scorecard assignments. I couldn't reply to that post bc it said not to

Re: H or L Deg

OmarGB9 — Sat, 19 Dec 2020 18:57:29 GMT

Hmm link to said post please?

Re: H or L Deg

Greenmach — Sat, 19 Dec 2020 19:01:13 GMT

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/SCORECARDS/m-p/4359411/thread-id/102215

It's in the graph in the reply. I may be over analyzing it.

Re: H or L Deg

OmarGB9 — Sat, 19 Dec 2020 19:11:31 GMT

Might be best to ask @Thomas_Thumb about that.

Re: H or L Deg

blindambition — Sat, 19 Dec 2020 19:17:17 GMT

If I'm getting what your asking, like a bankruptcy and charge off would be high. Was this what you're asking?

Re: H or L Deg

Greenmach — Sat, 19 Dec 2020 19:47:53 GMT

Sorry if I haven't been clear. Still very new to this. But yes, I'm going this week to pay off my only CO and hopefully turn it into a positive by getting them to remove the lates. Because it's an older account for me. But, I have CA's that I'm dealing with so was wondering if BKY and CO are only considered high and CA counted as low?

Re: H or L Deg

blindambition — Sat, 19 Dec 2020 20:04:00 GMT

As long as CO is on report, it can significantly suppress score, even if lender agrees to remove lates.

With CA, it depends how they report. They can report by OC, CA, or both. If reported by both, OC has acquired agency to help collect. You want to try for PFD, which is easiest when only owned by CA. Most OC won't PFD.

Re: H or L Deg

OmarGB9 — Sat, 19 Dec 2020 20:13:29 GMT

@Greenmach wrote:
Sorry if I haven't been clear. Still very new to this. But yes, I'm going this week to pay off my only CO and hopefully turn it into a positive by getting them to remove the lates. Because it's an older account for me. But, I have CA's that I'm dealing with so was wondering if BKY and CO are only considered high and CA counted as low?

Unfortunately once it's COd, it is permanently a derogatory account, regardless of whether they remove the lates. BK is the worst derogatory, followed by CA and CO which are pretty much at the same level. CO maybe slightly lower than CA.

Re: H or L Deg

Greenmach — Sun, 20 Dec 2020 03:51:29 GMT

Ok thank you. I thought a CO was worse than a CA. I also thought if they removed the CO it'd be a good closed account.

Re: H or L Deg

Anonymous — Sun, 20 Dec 2020 05:03:01 GMT

@Greenmach Either a BK or a CA will put you in a PR card. The CO alone would only relegate you to a delinquency scorecard.

You have to have the CA removed to have positive effect, and every CA. If you have even one CA you wear a significant penalty, paid or unpaid.

The BK affects you for 10 years, but at some point reduces effect when it moves to a mature PR card.

Either way the most recent BK or CA will determine when you go from a recent PR card to a mature PR card and when they’re all gone, you can go to a delinquency card if you still have the CO or a clean card if you do not.

As for the CO, you said it is unpaid and older. Here’s the question: is it regularly updating? If so, when you pay it, you might get a benefit. If not, when you pay it, you might see a drop, due to the catch-up penalty.

But since you’re in a PR card, it could behave differently. I would certainly love to know your data points and love to know what happens.

I would respectfully suggest you peruse the Scoring Primer linked at the top of my signature. I will go check out and refresh myself on the link and come back and try to answer your question about H/L. But the Primer should give you a basic education on scorecards.

Re: H or L Deg

Anonymous — Sun, 20 Dec 2020 05:33:19 GMT

H/L was a way of classifying which scorecard one was in. H/L signified which side of the segmentation threshold one was on. E.G.:

1. Thick/thin: H/L

2. # of accounts: <4/>3 on Version 9, maybe others? H/L

3. AoYRA (Age of Youngest Revolving Account): <12 months/12 months or more. H/L.

The first segmentation point before all of these is clean or dirty though.

We have now progressed to naming scorecards like this: Clean/thick/mature/no new account.

Again, read the Scoring Primer for a better understanding.

Re: H or L Deg

Anonymous — Sun, 20 Dec 2020 09:17:46 GMT

@Greenmach wrote:
Sorry if I haven't been clear. Still very new to this. But yes, I'm going this week to pay off my only CO and hopefully turn it into a positive by getting them to remove the lates. Because it's an older account for me. But, I have CA's that I'm dealing with so was wondering if BKY and CO are only considered high and CA counted as low?

CO will always be a CO even with the lates removed.

At least the entire account will age off at 7 years instead of 10 years while waiting out all the lates to age out along the way.

You would have to negotiate they remove the entire account in exchange for payment but it will be very unlikely to happen as that is normall something only CAs do for CAs.

I see CAs worse than COs, personally as even 1 CA remaining it will severely supress your scores paid or not whereas paying a CO with a balance may help improve your scores. This is just in my own experience and from what I have seen.