@SUMRFUN wrote:
I just checked my vantage score 3.0 on quizzle
Keep in mind that your VantageScores are only relevant to creditors that use them. They are irrelevant to creditors that use one of the FICO models, internal scores, etc. Impact to your FICO's and other models may differ.
@SUMRFUN wrote:
So is there an actual credit boost at 1% utilization versus 0% utilization, built into the algorithms??
General advice on Revolving Utiliation includes "do not let all your revolving accounts report 0 balances as there is a scoring hit for that". That advice isn't just a random statement but based on the observation that there is a scoring penalty for having all revolving accounts report 0 balances which is 0% overall Revolving Utilization.
Given the impact of Revolving Utilization and number of reporting balances that why the advice for those seeking to eke out as many points as possible when applying for new credit, requesting CLI's, etc is "allow only 1 balance to report at 10% or less" (1% for those really squeezing).
If your overall reported Revolving Utilization was 0% and you went to 1% then a scoring gain is to be expected. 0% to 1% on an individual card won't necessarily provide a gain. I.e. if you're already at 1% overall and allow another card to go from 0% to 1% you probably won't see a gain.
See also:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
which links to
http://www.myfico.com/CreditEducation/Amounts-Owed.aspx
which states:
In some cases, a low credit utilization ratio will have a more positive impact on your FICO Scores than not using any of your available credit at all.
@RM21 wrote:
Keep in mind thst is a Vantage score and probably does not reflect reality.
Despite the popular FICO/FAKO naming don't conflate "FICO" and "reality". All FAKO means is "not FICO". It does not indicate whether or not a creditor uses a given model. While most creditors use a FICO model in making credit decisions not all do. VantageScores are used by some creditors. Other scores that are not FICO's are also used by creditors such as internal scores.
VantageScore 3.0 cannot be used to determine a FICO 8 or any score generated by any model other than VantageScore 3.0 but that applies to any scoring model out there. Different scoring models evaluate report data differently and can have different scoring ranges. One cannot use any score generated by one model to determine a score generated by a different model. If one wants to know what one's TU FICO 8 is then one needs to go pull that specific score. If one wants to know what one's EQ FICO 8 Bankcard is then one needs to go pull that specific score.
@RM21 wrote:
The key is how did it effect your Fico scores.
The key is always considering the specific scoring model & CRA and the relevance of a given model/CRA combo to a creditor. If a creditor you use or intend to apply with uses a given model/CRA combo then that model/CRA combo is relevant to that creditor's decision. If not, then it's not relevant.
Do not assume that only FICO matters. Do not assume that all creditors that use a FICO model use the same FICO model. FICO doesn't have just one model (see also the Understanding FICO Scoring subforum and its stickies) and, as with any scoring model, the specific model will have an impact on the number generated.
