topic Re: Maxed one card - Utilization memory in Understanding FICO® Scoring

Maxed one card - Utilization memory

GatorGuy — Fri, 12 Aug 2022 00:24:18 GMT

As an experiment for myself I let one card report as maxed. Technically it reported at 94%. My EX 8 score dropped 32 points. One month later, I paid off the card in full. I gained 36 points back showing that there is no utilization memory.

For reference I have a thick/mature/clean file. Attached pics for reference.

Re: Maxed one card - Utilization memory

pizzadude — Fri, 12 Aug 2022 00:25:46 GMT

Thanks for sharing these data points ! How much did the maxed card impact your overall revolving utilization? Also how many cards with balances were reporting ?

Re: Maxed one card - Utilization memory

FireMedic1 — Fri, 12 Aug 2022 09:31:15 GMT

Wow. Maxed out does do some damage as we know. Thanks brother for sharing.

Re: Maxed one card - Utilization memory

D10001 — Fri, 12 Aug 2022 10:02:02 GMT

I've gotten declined for credit line increases for lack of utilization. Does maxing out that one line and paying it in full make that line ripe for an increase?

Re: Maxed one card - Utilization memory

GatorGuy — Fri, 12 Aug 2022 11:25:49 GMT

@pizzadude wrote:
Thanks for sharing these data points ! How much did the maxed card impact your overall revolving utilization? Also how many cards with balances were reporting ?

@pizzadude My overall utilization was 14% with the card. I had 7 cards reporting a balance.

Re: Maxed one card - Utilization memory

Anonymalous — Fri, 12 Aug 2022 14:48:44 GMT

Can confirm. I recently let one card go from 3% to >50% (overall went from 1% to 9%), and lost 16 points (EX8). And then I gained 15 points, when I paid it off to 2% (<1% overall). Young/thin/clean file.

Re: Maxed one card - Utilization memory

babygirl1256 — Fri, 12 Aug 2022 14:57:22 GMT

@GatorGuy Yep, the utilization makes a difference as I discovered that several years back . . . thanks for posting!!!

Re: Maxed one card - Utilization memory

GatorGuy — Fri, 12 Aug 2022 17:42:08 GMT

As a comparison here is my TU VS3 score that just reported. I lost 88 points when the card first reported. Now gained 96 points back. Also shows how much more sensitive VS is to utilization than Fico8s.

Re: Maxed one card - Utilization memory

GatorGuy — Fri, 12 Aug 2022 17:44:00 GMT

@D10001 wrote:
I've gotten declined for credit line increases for lack of utilization. Does maxing out that one line and paying it in full make that line ripe for an increase?

@D10001 This card was a Chase card which I have gotten auto CLIs with them in the past for high utilization, although not this high. Usually they want to see atleast 2 to 3 months of heavy utilization. Personally I would not max out a credit card to try and get a CLI since many lenders can be very sensitive to it.

Re: Maxed one card - Utilization memory

Anonymalous — Fri, 12 Aug 2022 21:43:01 GMT

@GatorGuy wrote:
As a comparison here is my TU VS3 score that just reported. I lost 88 points when the card first reported. Now gained 96 points back. Also shows how much more sensitive VS is to utilization than Fico8s.

Can confirm as well. The effect on my jump to >50% utilization on a single card (9% overall) and back was TU VS3 -39/+40, EQ VS3 -37/+33. So more than double the -16/+15 of EX FICO 8.

It's harder to assess FICO 9s, because the ones I have access to only update 1/month and don't come with a credit report (i.e. they weren't generated at the precise time utilization was updated, and I can't double check the utilization they used to generate the score), but they seem to be comparable to FICO 8: EQ FICO 9 was -2/+14, while EX FICO 9 Bankcard was -17/+15. Can't explain the -2.

Re: Maxed one card - Utilization memory

Zoostation1 — Sat, 13 Aug 2022 04:19:48 GMT

For me Fico 9 has had only slightly more volatility from usage alone (much more volatility from not being AZEO), but also with super low util can squeak a few more points out beyond what I would be at just below 10%. Fico 8 seems to max out for me once I'm AZEO and below 10%, whereas going down very low (2%, 0%, 1% agr) has given me a few more points yet. TU8 has treated each of the 3 situations the same for me while EX only had a 3pt dip in the middle: (9%, 0%, 8% agr.), (10%, 6%, 9% agr), and (2%, 0%, 1% agr). I wonder how much of that is due to the dirty profile.

Re: Maxed one card - Utilization memory

AndySoCal — Fri, 19 Aug 2022 01:29:29 GMT

@GatorGuy

There is field on the credit report called high balance or high credit( Equifax). This field contains the highest balance the acount has ever reached. It used to have a very limited impact if any on the credit score. See link below

https://www.creditcards.com/credit-management/high-balance-high-credit-impact-score/

Charge cards that are reporting the account as open are not impacted by the lack of a credit limit. Only accounts that have an account of revolving are possibly impacted. If you have an NPSL account check to see how it reports. If my memory is correct the older models of FICO scores would be impacted IE before FICO 8