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10 Point DROP After paying off Citibank

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Super Contributor

Re: 10 Point DROP After paying off Citibank


@BrutalBodyShots wrote:

@NRB525 wrote:

FICO 8 penalizes scores when all revolving accounts are zero. The points penalty is profile specific. It is just a fact. 

Why ask why? 


Is it profile specific?  I have not heard of someone not incurring an AZ penalty on revolving accounts. 


I also balked at that sentence. But then I figured out that he means the number of points is profile specific.


Total revolving limits 653000 (575000 reporting)

Message 21 of 24
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Super Contributor

Re: 10 Point DROP After paying off Citibank


@SouthJamaica wrote:

 

Not in my case. In my case it exceeded 30 points. 30 points was my attempt to provide an average.

 


 


But the majority of your points came once you dropped to 8.9%, meaning that for the other 90%+ of the paydown you would not have been penalized ~30 points had you paid off the loan.   Or, that you weren't experiencing the majority of the loan [points] benefit for most of the time.  I get it that it's a glass half full glass half empty argument, I suppose I just see it opposite of the way you do. 

Message 22 of 24
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Super Contributor

Re: 10 Point DROP After paying off Citibank


@SouthJamaica wrote:

 

If you're satisfied with the explanations given in the AMA thread, fine. To my mind they make no sense whatsoever.


 


I'm not speaking about the thread at all (I'd personally grade it a "D" in terms of being informative), simply the one point made regarding the topic at hand regarding risk and the AZ penalties.  If that was what was found with their research regarding risk assessment on that subject I'm good with it, as no doubt they invested far more than we have. 

Message 23 of 24
Highlighted
Super Contributor

Re: 10 Point DROP After paying off Citibank


@SouthJamaica wrote:

@BrutalBodyShots wrote:

@NRB525 wrote:

FICO 8 penalizes scores when all revolving accounts are zero. The points penalty is profile specific. It is just a fact. 

Why ask why? 


Is it profile specific?  I have not heard of someone not incurring an AZ penalty on revolving accounts. 


I also balked at that sentence. But then I figured out that he means the number of points is profile specific.


"The points penalty is profile specific." Meaning every profile loses points at All Zero, but different amounts of points. 

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 24 of 24
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