@Anonymous wrote:
@AnonymousWhat does fico eight have to do with this to begin with? We are talking about mortgages that is 5, 4, and 2.
Yes fico 8 puts more weight on credit card utilization than the older models. Notice the word “utilization” not “usage.”
Yes we do know how they are determining credit card utilization in Version 8, and we also know how they are determining credit card usage. I just explained usage to you.
Utilization goes by the thresholds you need to read @ABCD2199 ’s thread it explains it exhaustively. It’s called “the truth about credit card utilization.”
No you are absolutely 100% incorrect. Version 8 does not incorporate trended data. I thought you went and did some reading and determined that for yourself?
Trended not “trending” data uses utilization not usage. Yes it’s very clear this has nothing to do with version 8 and more importantly nothing to do with the mortgage scores.
No they didn’t go back and put trended data in version 8, they created a new version called 10T, did you miss the news? There’’s a big article in the credit in the news forum all about it you should read it.
What do you mean now that the data is available? Do you know how long the CRAs have been capturing and keeping that data? For as long as creditors have been reporting it. And for some lenders that’s been quite a period of time, some lenders still do not report it.
They could’ve modified their analysis of credit card utilization long ago, but they chose not to and now that vantagescore 4.0 has, fico apparently felt the need to make an additional algorithm in addition to classic 10 called 10T that uses trended data. They’ve been talking about this and considering it for many many years. This is not new.
When they put more weight on utilization in fico 8, that was in comparison to previous models. That wasn’t a recent change where they changed the algorithm. It has not changed since 2008 when it was released, that I am aware of. They don’t change the algorithm, they make a new one. Otherwise how would they make money? They make money by making a new algorithm and convincing lenders to switch to it.
We do know how it works. What do you think we’re doing here? we adjust spending and reporting to maximize score. That’s exactly what we do here. there are many unknowns but utilization is probably the most known.
The breakpoints are the same for revolving utilization for 1998 version to 2008 version. The difference is they adjusted the signal strength, therefore placing more weight on it.
Do some reading and research and you’ll understand what I’m trying to tell you.
Yes, you are correct that trended data is not used in 8. It is in 10 T but that won't come into play yet. Vantage 4 has it, but those are not used for mortgages. When they collect more info, they can use it for other analysis. The process is not trivial. Scoring is not simple as is made to be with articles that highlight the main points of a scoring model.
The point is, the lenders may get access to info that we don't get. The scores could be the same, but in depth information on the report may not be what we get. So, to err on the side of caution, without the risk of showing no credit card use, I report balances. If I need a boost from AZEO, I do it. Even if a lender tells me months in advance that the model they use will not generate a higher score if I use AZEO. I would still do it.
If reporting balances amounts to zero, I'm ok with that. I do not know exactly what they see so I do it anyway.
