topic Re: Fico 2 & 4 in Understanding FICO® Scoring

Fico 2 & 4

Anonymous — Fri, 28 Jan 2022 16:47:50 GMT

I have 9% utilization follow AZEO. Paid off a large student loan debt. I have 2 years of solid on time no lateness payments. Now before that it was a **bleep** show I admit. But why isn't FICO 2 updating? I have literally done everything that people recommend and still can not get a refi for my mortgage.

Any suggestions for improving FICO 2 AND 4?

Re: Fico 2 & 4

SouthJamaica — Fri, 28 Jan 2022 17:15:49 GMT

@Anonymous wrote:
I have 9% utilization follow AZEO. Paid off a large student loan debt. I have 2 years of solid on time no lateness payments. Now before that it was a **bleep** show I admit. But why isn't FICO 2 updating? I have literally done everything that people recommend and still can not get a refi for my mortgage.

Any suggestions for improving FICO 2 AND 4?

You need to tell us what's in your profile if you want us to give you recommendations for improving your score.

So far all we know is that your revolving utilization is 9% and you're practicing AZEO, both of which are good things.

Re: Fico 2 & 4

Anonymous — Fri, 28 Jan 2022 18:31:37 GMT

It looks like credit utilization is revolving between 38-52% which isnt accurate. If it goes over 15% it gets paid down that week. One new line of credit 4 months old. Everything else is aging if I take the colors to mean anything ...orange to yellow now.

What specifically would be helpful from my profile?

Re: Fico 2 & 4

Anonymous — Fri, 28 Jan 2022 20:00:11 GMT

Do you have any chargeoffs? If so and they have a balance those are counting toward your balance and increasing your utilization. Also, make sure that your accounts are reporting on a zero balance when the statement cuts, even if you are paying your cards off routinely you may inadvertently be allowing a balance to report

Re: Fico 2 & 4

SouthJamaica — Sat, 29 Jan 2022 04:50:27 GMT

@Anonymous wrote:
It looks like credit utilization is revolving between 38-52% which isnt accurate. If it goes over 15% it gets paid down that week. One new line of credit 4 months old. Everything else is aging if I take the colors to mean anything ...orange to yellow now.

What specifically would be helpful from my profile?

Utilization is computed based upon reported balance, which is usually your statement balance. It doesn't matter that you paid it after it reported.

So your utilization isn't 9% it's 38-52% which is what's hurting your scores.

E.g., assume Joe and Sam each have 3 cards, each with a 10k limit for a total of 30k total of limits, each of which reports the balance as of the statement date.

Joe and Sam each spend 5k per month on each card for a total of $15k per month.

Joe pays everything the day before the statement.

Sam pays everything the day after the statement.

Joe has zero utilization.

Sam has 50% utilization.

Bottom line, you don't have 9% utilization and you're not practicing AZEO.

If you get down to 9% utilization and practice AZEO in the real world, your mortgage scores will be much better.