Just tried it out to see what I maybe can expect when Navy reports my amex with $5000 line.
that would drop my utilization from 50% to 37%.
Fico app says "adding a $5000 credit card" would decrease EQ by 6 points and no change on TU and EX.
@collics To me a Decrease doesn't sound right but please post an update so we can see honestly I don't look at or rely on the Simulator ^^
The only thing I can think of that may drop it temporarily is if the Age was affected by the new addition or it added an inquiry to a spot that tipped it over the fence a bit so to speak XD.
@Girlzilla88 will do!
The differences they indicate for these two scenarios are interesting.
Would have assumed dropping to the next utilization threshold would outweigh the inquiry and new account hit.
@collics wrote:Just tried it out to see what I maybe can expect when Navy reports my amex with $5000 line.
that would drop my utilization from 50% to 37%.
Fico app says "adding a $5000 credit card" would decrease EQ by 6 points and no change on TU and EX.
It depends on how the boost received for dropping below the 49% util threshold stacks against the number of points potentially lost for adding a new account and lowering AAoA. If points gained from reduced util exceed those lost for a new account, you'll have a net gain. If points lost for a new account exceed those gained for reduced util, you'll see a net loss. Or, you break about even.
Simulators should never be relied upon but they sometimes do land in the ballpark. Differing util or aaoa data between the bureaus could be why the simulator shows no change on TU and EQ.
@collics wrote:@Girlzilla88 will do!
The differences they indicate for these two scenarios are interesting.
Would have assumed dropping to the next utilization threshold would outweigh the inquiry and new account hit.
It outweighs the standalone inquiry hit - the limit increase scenario is assuming an hp is incurred for increasing an existing card - in that case, reduced util would come out on top.
The adding a new account scenario is assuming combo hits to your aaoa, aoya, and an inquiry - which reduced util may not overcome - calculating a 6 point deficit on EX but a break even on TU and EQ
Thanks y'all!
at least I'll be prepared for a bit of a decrease when it happens and won't be surprised/bummed.
Will update in March when navy issues next stmt.
I think the MyFICO simulator uses the correct math, but not enough inputs. In actual scoring, things are changing all the time - at a minimum, account ages, usually inquiries in various time thresholds, account balances, etc. In simulators, nothing changes except whatever variable or variables you have it change. Also, I think the simulations are based on the last time you updated your credit reports, not based on your credit reports at the time you run the simulator, so in some cases, it could be months out of date. The result is that the simulator is probably directionally correct, but is almost guaranteed to be wrong on the specific numbers. JMO.
