topic Re: An amusing tidbit in Understanding FICO® Scoring

An amusing tidbit

vanillabean — Sat, 25 Feb 2012 18:44:07 GMT

Two scenarios:

1) Two cards each have a 29% util, the rest are at zero.

2) One card has 58%, the second card and the rest zero.

It turns out the EQ scores are about the same, which means that having just one balance does no more than offset the higher util on that card. Total balances are about the same.

You can take it or leave it.

Re: An amusing tidbit

MarineVietVet — Sat, 25 Feb 2012 18:53:17 GMT

@Anonymous-own-fico wrote:
Two scenarios:

1) Two cards each have a 29% util, the rest are at zero.

2) One card has 58%, the second card and the rest zero.

It turns out the EQ scores are about the same, which means that having just one balance does no more than offset the higher util on that card. Total balances are about the same.

You can take it or leave it.

This means your experience will not the same as someone else's. Nothing new about that.

That's why the most used acronym here is YMMV and why I always say "Everyone's situation is different and there is no one size fits all".

Re: An amusing tidbit

RobertEG — Sat, 25 Feb 2012 22:10:47 GMT

If both cards had the same CL and if scoring at each level of util was linear, maybe......

But, in my experience, scoring is not linear, meaning the same change in util at higher levels impact more than at lower levels.

Also, if the cards have different CLs, the "tidbit" does not remotely work, as it ignores the overall % util difference.

Consider:

Card 1 10,000 CL 2900 bal % util 29%

Card 2 300 CL 87 bal % util 29%

Overall % Util: 29%

Card1 10,000CL 5800 bal % util 58%

Card2 300 CL 0 bal % util 0%

Overall % Util: 56%

Card1 10,000 CL 0 bal % util 0%

Card2 300 CL 174 bal % util 58%

Overall % util < 1%

Re: An amusing tidbit

vanillabean — Sat, 25 Feb 2012 23:07:15 GMT

@RobertEG wrote:
If both cards had the same CL and if scoring at each level of util was linear, maybe......
But, in my experience, scoring is not linear, meaning the same change in util at higher levels impact more than at lower levels.

Yes, the two cards have about the same credit limit. Anything else would have been an unforgiveable variable.

You're right; I forgot that a util, like a derogative, may impact higher levels more. DW and I are both at 814.