I guess as the originator of this wild and wonderful thread, I should report my rating and DP.
Insights:
- High installments loans
- High number of revolving accounts
Data Points:
- FICO 8, EQ 827
- < 1% utilization across $60k CL (8 cards)
- No bank card balances carried
- No mortgage
- 1 personal loan (PenFed)
- 1 truck loan
I have been railing for decades over the inherent unreliability of the "reasons" behind a FICO score, which I consider to be little more thana simple random number which has very little to do with reality. Now FICO has come up with the "FICO Resilience Index" - a sort of "stress test" of a FICO score. Here is mine.
Now - let's look at the reasons for my high score (and therefore low resilience): First, let's look at how my Installment Loans affect my Resilience:
Pretty scary, right? Except for the fact that at the time this score was created BOTH MY INSTALLMENT LOANS HAD ALREADY BEEN PAID OFF AND A $0 BALANCE REPORTED!!!! So, to FICO, a balance of $0 in Installment Loans is a scary thing. Now let's look at the Credit Card side:
Notice - it does not address the BALANCE owed on Credit cards, just the fact that a high percentage of my remaining debt capacity is eaten up by credit cards. With the payoff of the installment loans all the remaining debt capacity I have is in credit cards, with a cumulative Util of less than 2%. The new score admits that my FICO score is "above average" but still docks me for not having any installment loans. In the two details, please read the sentences that start with "Generally....." - they are identical - so that in the Installment Loan section they are telling me that my Credit Resilience will be better if I have low balances in my Installment Loans, and in the Credit Card section NOT having enough in Installment Loans (hence the "lower percentage of their credit accounts that are revolving accounts" makes me a better credit resilience. BUT.... the fact that I am nearly debt free ($0 owed in Installment loans and Credit Card Util of less than 2%) somehow makes me more suceptible to missing payments in an economic downturn than, say, a person who owes $100,000 on a mortgage.
This new score appears to be just one more example of FICO-babble designed to confuse us further.
@Anonymous wrote:This new score appears to be just one more example of FICO-babble designed to confuse us further.
Welcome to this crazy world:
@Anonymous wrote:I have been railing for decades over the inherent unreliability of the "reasons" behind a FICO score, which I consider to be little more thana simple random number which has very little to do with reality. Now FICO has come up with the "FICO Resilience Index" - a sort of "stress test" of a FICO score. Here is mine.
Now - let's look at the reasons for my high score (and therefore low resilience): First, let's look at how my Installment Loans affect my Resilience:
Pretty scary, right? Except for the fact that at the time this score was created BOTH MY INSTALLMENT LOANS HAD ALREADY BEEN PAID OFF AND A $0 BALANCE REPORTED!!!! So, to FICO, a balance of $0 in Installment Loans is a scary thing. Now let's look at the Credit Card side:
Notice - it does not address the BALANCE owed on Credit cards, just the fact that a high percentage of my remaining debt capacity is eaten up by credit cards. With the payoff of the installment loans all the remaining debt capacity I have is in credit cards, with a cumulative Util of less than 2%. The new score admits that my FICO score is "above average" but still docks me for not having any installment loans. In the two details, please read the sentences that start with "Generally....." - they are identical - so that in the Installment Loan section they are telling me that my Credit Resilience will be better if I have low balances in my Installment Loans, and in the Credit Card section NOT having enough in Installment Loans (hence the "lower percentage of their credit accounts that are revolving accounts" makes me a better credit resilience. BUT.... the fact that I am nearly debt free ($0 owed in Installment loans and Credit Card Util of less than 2%) somehow makes me more suceptible to missing payments in an economic downturn than, say, a person who owes $100,000 on a mortgage.
This new score appears to be just one more example of FICO-babble designed to confuse us further.
I think the whole resilience score thing is a joke really. But IMHO they are not looking for a $100,000 mortgage, but rather loans with a very low B/L, just like you get the extra points for the SSL strategy once you get down to 9%. So unless it was $1 million mortgage to start with..., but then it seems like it penalizes you if the payments are too large.
And I think there's simply looking at the percentage of credit cards you have, as you said the more debt capacity you have. I guess they look at it as more likely to occur if the ability is there.
So they want nearly paid off loan(s)(with low payments) and a low ratio of cards to loans, it appears. I think 75% has been discussed as a possible threshold. 3:1. I think the majority of us here are all going to get that red flag.
Okay, my bad if I've missed something but I haven't followed this thread in a while. Was at 54, think it ticked up a bit the following month to 56 which is the last time I checked. But had to post as I pulled my report yesterday and just remembered to check this...my score is now 49.
As my # of accounts decreased:
---from 3 rev, 2 loans --> 1 rev, 2 loans
As my UTL decreased:
---AGG CC UTL from 4.64% --> 1.68%, Home UTL from 83.6% --> 81.3%, Auto from 11.48% --> 7.83%
I get more risky as I pay down my balances (well above the amount due) 
Yet EQ loves me FICO score wise. 
