"Utilization has no memory," planned to pay down and apply. But now I learn about Transact/Revolv?

[PerArduaAdAstra]

Hi all

I have 5 cards I've been gardening for about 8 months. But around 5 months ago I lost a lot of income and maxed them all out. I had some overlimits reported because of interest on balance cut. So many people on the forums said "Utilization has no memory, highest reported balance doesn't matter once you pay it down" and I haven't worried about it. 

Without high util I will have gone from 600 to almost 680 from this garden. I'm back on my feet and am paying all my cards down with a plan to start some new apps, and especially apply for CareCredit at the end of the month because it looks like my dog might be getting sick. But now I'm reading about CRAs collecting and reporting data on your payment history?? So the fact that I've been paying only minimum payments with maxed out cards for 5 months will be visible on my new applications? They'll all see I've been a heavy revolver?? Or am I completely misunderstanding this?

Also CareCredit is run by Sync and I've had PayPal Credit $300 maxed out with them for like 8 months. Denied Walmart and Amazon by them 6 months ago 50% util. Are they going to look at a $2k CareCredit application and be like NOPE, even though my credit profile will be <8% utilization and squeaky clean?

Thanks

[Brian_Earl_Spilner]

Utilization has no memory when it comes to your score. But your score isn't the only thing lenders take into account when you apply for credit.

What you're talking about is trended data. While your main reports won't show you've been paying minimum payments, they do show your highest balance, which if you've gone over your limits, will be apparent. Nobody knows everything that's trended, but lenders have shown that they can keep track of your balances and how long you've had them, as well as keeping track of how quickly you pay them off. I've received denials citing that I'm not paying off the balances on my cards fast enough or making large enough payments. It's also one of the reasons VantageScore is so volatile. They've been using trended data for years and FICO is now trying to catch up in that aspect. 

[Anonymous]

And as far as Sync goes, it has been reported (confirmed?) that they are using Vantage 4.0 scores for, at least some, credit decisions. With Vantage scores showing the use of trended data and the fact that your internal history with them shows historical high utilization with minimum payments, they may be shy on approvals for a while.

[PerArduaAdAstra]

Is there anyplace I can view this "trended data"?

[Brian_Earl_Spilner]

---

@PerArduaAdAstra wrote:

Is there anyplace I can view this "trended data"?

---

Not that I'm aware of, but from what I've read, it's just the info on your reports for the last 2 years (at least with VantageScore) that's been collected to show things like average balances, etc. The trended data isn't what's important, it's what the lenders do with it. In my case of being denied additional credit, I have no idea what they consider too long or a large enough payment. Neither do the CSRs.

[Shooting-For-800]

Cant worry about past.

I doubt it would affect you dramatically if ALL your accounts now show the lower balances.

GL!

[Anonymous]

---

@PerArduaAdAstra wrote:

But now I'm reading about CRAs collecting and reporting data on your payment history?? So the fact that I've been paying only minimum payments with maxed out cards for 5 months will be visible on my new applications? They'll all see I've been a heavy revolver?? Or am I completely misunderstanding this?

This is dependent on the card issuer/payment processor. My credit union issued Mastercard reports a lot of trended data, but Citi doesn't. This is what that data looks like on a full annual credit report obtained from TransUnion in March 2019:

Another interesting difference between the credit union card and Citi is that 'High Balance' represents the highest balance that occurs, even if that is between closing dates. My Citi Visa high balance is just the highest statement balance that has been reported.

If you have a card that is handled by a payment processor like 'PSCU' (my cu Mastercard) , then utilization has a very good memory, but still not used in FICO scoring.

Also CareCredit is run by Sync and I've had PayPal Credit $300 maxed out with them for like 8 months. Denied Walmart and Amazon by them 6 months ago 50% util. Are they going to look at a $2k CareCredit application and be like NOPE, even though my credit profile will be <8% utilization and squeaky clean?

---

Synchrony's internal data could be very detailed, as they already know the date of payment/amount paid/historical info on cards they issue.

[HeavenOhio]

Credit reports from annualcreditreport.com will show payment data if the bank is reporting it. As mentioned, not all banks report payment numbers. I'm not sure how VantageScore 4.0 is able to address trended data, but I guess the developers are confident in what they're doing.

If you feel that your transactor/revolver behavior isn't flattering, the fix is to improve it over time. Balance, limit, and payment information disappears from Equifax and Experian after 24 months. TransUnion holds onto the data for 30 months.

I woudn't get too bent out of shape over your highest balance. As mentioned, the way it's computed isn't consistent from bank to bank. Also, it's common to voluntarily take credit limit decreases, particularly when one shifts limits from card to card.

[Anonymous]

Yes, if your lenders reported the behavior, its there and can be seen. As stated, its lender-specific, what is reported. To my knowledge, only VS4 uses trended data, and only Synchrony is using it (for CLIs and possibly new apps).

So, utilization has no memory when it comes to scoring, except for VS4. BUT, the data is still there, if reported, for a prospective lender to review.

Most CC apps are automated, but those that are manually reviewed, or go to manual review, could consider that data as well (looking at USB, possibly Barclays).