Is a CLD Viewed Negatively on a Credit Report?

[Anonymous]

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@HeavenOhio wrote:

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@Anonymous wrote:
They have no way of telling what your limit used to be by looking at your current report, in the same way they can't tell what your previous balance or UTI were.

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Without looking at my reports, I believe EQ and EX show your credit history for the past 24 months, and TU shows it for the past 30 months.

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So when a lender HP they get all that history? I always thought they get a snap shot of your profile, reason why UTI has no memory and matters not until the cycle prior to the HP? I could be wrong though.

Edit: Upon further thought, I think you're referring to account payment history, does the actual report track credit limit history like it does payment history? I have never actually seen a physical report, I'm going by reports generated online at each CRAs, I don't remember seeing info that tracks CLs other than showing the current CL.

[Anonymous]

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@Anonymous wrote:

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@HeavenOhio wrote:

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@Anonymous wrote:
They have no way of telling what your limit used to be by looking at your current report, in the same way they can't tell what your previous balance or UTI were.

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Without looking at my reports, I believe EQ and EX show your credit history for the past 24 months, and TU shows it for the past 30 months.

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So when a lender HP they get all that history? I always thought they get a snap shot of your profile, reason why UTI has no memory and matters not until the cycle prior to the HP? I could be wrong though.

Edit: Upon further thought, I think you're referring to account payment history, does the actual report track credit limit history like it does payment history? I have never actually seen a physical report, I'm going by reports generated online at each CRAs, I don't remember seeing info that tracks CLs other than showing the current CL.

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Check the google drive picture I posted on page 1. I circled the area where it shows my credit limit history. If banks can see what I see when they do a HP, they can definelty see what your limit is and used to be. 

[Anonymous]

Is that from an actual report? I have never seen that before. I just combed through all three reports, EX and TU only show current CLs, EQ does have a field for "Highest Limit" without dates so it's still impossible to figure out when the change occurred. Perhaps the raw report looks different and contains more information than what the CRAs present online, sorry I threw your thread off track.

BTW I just moved 10K from my 20K BCE to my BCP last month, EQ on today's report shows 10K for Current Limit and also 10K for Highest Limit, so much for that.

[Anonymous]

Yes that's from a TU (I think) report I got from them in January. And no problem on the derail, it was kind of related.

[Anonymous]

If that is from an official report, I stand corrected. I'm going to order my annual free report to see what else is on it.

[Anonymous]

Hi Oldman.  The CLD data you are hearing about are part of a larger group called "trended data."  These include, for example, your balance each month for the last 24 months and (if the CC issuer reports it and many do) every payment you have made, including for how much and on what date.

Trended Data (TD) did not begin to be collected by any of the CRAs until well after 2010, and therefore FICO 8 never included them.  Even when FICO 9 was being developed TD were very spotty and there was no way FICO could have included them, especially since it would have been such a seismic shift in FICO's approach.

Still, three years ago TD represented the hoped for Eldorado of the scoring world.  The hope was that all CC issuers would by 2019 include complete TD on all their customers (stetching back either 24 or 30 months).  If this had happened then it would have indeed enabled lenders and CC issuers to be able to much more accurately assess risk (and enabled CC issuers to better assess profitability).  But somewhere in 2016 it began to look like many CC issuers were not willing to submit full TD (especially payment history) on their customers.  It's been on my own personal radar for 2018 to pull all three bureaus via AnnualCreditReport.com and take a look at my credit cards (I have 13) and see which of them are including payment history. 

I'd still love to discover that complete TD will become a part of the three bureaus.  If no progress gets made by next year, however, then maybe it will never happen.

[Anonymous]

Thanks for the explanation CGID, some follow ups, given that lenders have access to TD, does that not render any attempts to manipulate UTI like AZEO mostly pointless? Does it not blow up the theory that All Zero is bad because lenders would assume you have 0 usage?

[Anonymous]

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@Anonymous wrote:
Thanks for the explanation CGID, some follow ups, given that lenders have access to TD, does that not render any attempts to manipulate UTI like AZEO mostly pointless? Does it not blow up the theory that All Zero is bad because lenders would assume you have 0 usage?

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Lenders (and CC issuers) have access to TD, since they have access to your reports.  But FICO has been making its living for the last 30+ years on the fact that most creditors would rather review a single 3-digit number (300-850) than try to interpret a customer's reports on their own.  FICO 8 and 9 were developed before TD were a practical reality (FICO 9 was close though) and therefore the big FICO models ignore the TD in your report.

You are right that FICO 10 might use TD and if it did then all cards reporting zero would no longer be bad.  In fact having an ultralow CC utilization would no longer be the best way to have a high score, since FICO would have better predictors.  Having an absurdly low utilization (e.g. 1-5%) is something that FICO has used up till now because it lacked the ability to answer the far more predictive question of whether this consumer has paid every one of his cards in full every month for the last 24 months.

But FICO 10 will only probably use TD if the CRAs have complete TD data from most CC issuers, which may not happen -- or if it does not until FICO is about to release it.  In which case we'd have to wait till FICO 11.  And bear in mind, just suppose FICO 10 did use TD and suppose it was released in 2021.  It would only begin to matter until many lenders and CC issuers (or began to use Vantage 4.0).  I.e. not until 2024 at the earliest.  The only exception might be the mortgage industry, since Fannie Mae placed a TD module inside its last version of Desktop Underwriter.

[Anonymous]

In other words, once it goes into manual review, your UTI cover is blown.  Thanks for sharing your knowledge, I feel like I just got out of class.

[HeavenOhio]

The colorful report linked to on the previous page is the TransUnion report obtained from annualcreditreport.com. The other reports are more bland.

Credit limit history is on all three reports. That's easy for the bureaus to compile because card limits are reported every month.

Historical payment information is much more spotty. With some banks, enough payment data are reported that it's easy to tell if one has been a revolver or transactor on a particular card. If banks report actual payment amounts for each month, that's all that's needed.

As of now, however, many banks don't report actual payment amounts. Given that, it'd be tough for lenders to get an accurate picture as to whether one is a revolver or transactor.