2 point EX ding for 1 card over 8.9%?

[Anonymous]

Interesting data here everyone.  Many of you know that I recently went from AZEO to 100% of cards with balances reported (8 total cards on EX) and back to AZEO and I did not experience any score drop at all throughout the process.  I was able to determine that number of cards with balances on my profile has zero scoring impact when talking EX FICO 8.  It is worth noting that during this experiment my aggregate utilization remained in an ideal place the entire time (say 1%-4%) and no individual card ever had a balance at > 8.9% of the limit.

I grabbed my scores today from CCT and noticed a 2 point drop on my EX score from 850 to 848.  Interesting.  I figured perhaps an old account fell off of my report, taking my AAoA down slightly across a threshold.  I searched my report and all of the accounts are still present on there that were there 1 week ago when I pulled the 850 score.  So, I ruled out age of accounts factors.

I did have 1 more card report a balance, going from AZEO to AZE2.  Based on my already mentioned experiment above, I didn't even consider the second balance when trying to determine the score drop.  Then something occurred to me.  The new reported balance was a little higher than is typically the case.  In doing the math, it was 10.2% of the limit... so greater than 8.9%.  I've always been under the impression that highest individual card utilization doesn't impose it's first ding until crossing the 28.9% threshold and that for many not until 48.9% is crossed, of course assuming aggregate utilization stays ideal (under 8.9%) the entire time. 

Anyway, I thought some of you may find this interesting, as it shows me that at least on some profiles having an individual card above 8.9% while keeping aggregate utilization the same can result in a minor score ding on FICO 8.  It's also worth noting that I saw a 1 point ding from 847 to 846 on EQ for the same event.  The balance hasn't yet updated on TU, so I can't speak of that score... but I'm at 850 there and I believe with a little buffer so it wouldn't be a clean point of data if the score doesn't change.

[Anonymous]

This mirrors my most recent test, as you know, I have put everything on autopilot since April with 7/8 cards naturally reporting, I was a little bored so I decided on one last AZEO to confirm my own data. I chose my PenFed PCR to be "except one" because it had the highest UTI (12%) and it closes the earliest so I don't introduce AZ penalty into the equation, I paid off every card and left $190 (2%) on the PCR. When PCR reported on 26th, I got the same 2 point bump (827-829) on Experian for taking the highest individual UTI from PCR @ 12% down to Freedom @ 5%.

Furthermore, as of today, all other accounts have finished reporting $0 putting me in AZEO, no changes for EX FICO8 829 as expected. That said, I did gain 10 points on EQ and 7 points on TU when I pulled CCT today but few of those points should probably go to individual UTI like on EX.

[Thomas_Thumb]

@BBS

You should bounce utilization between say 7% to 12% a couple times and check/publish resulting CRA Fico 8 scores.

Although I don't have any good Fico 8 data to offer, I did experience something that could be pertinent on Fico 04.

I did see my EQ and TU Fico 04 scores drop when my AU card (CL $34.9k) reported a balance around 17% back in April 2018. My conclusion was the high AU balance likely triggered a score drop due to exceeding an aggregate balance threshold. Could be that and AU card UT rising above 9%. [side note: AG UT was 5.3% with AU card, 0.6% excluding AU card]. Fico 8 excludes my AU card.

The following reason statements for Fico 04 (among others) were listed. Really no need for the amount owed reason statement if Fico only looks at revolving accounts relative to % utilization.

[Anonymous]

---

@Thomas_Thumb

You should bounce utilization between say 7% to 12% a couple times and check/publish resulting CRA Fico 8 scores.

 

---

Do you mean just to sort of verify the data point?  I could probably make that work, although not for another cycle or two.  I'll be reporting closer to 40%-50% utilization next go-round on the card that just reported at 10.2%, but will bring that back down to a single-digit reporting the following cycle.  I guess in the meantime I can see the impact of crossing the 28.9% and maybe even 48.9% thresholds.

I just found it surprising to see the 2 point ding, as I always thought an individual card above 8.9% didn't matter.

OM, glad to hear you experienced something similar and thanks for sharing your experience as well!

[Anonymous]

I was a bit lucky catching those 2 points, like you I thought 28.9% was the bottom threshold for individual UTI so I was not looking for them, all my other cards closes 1-2 days after PenFed, it's a good thing I have Experian daily update and was paying attention that day.

[Anonymous]

If it wasn't for EX being bulletproof to number of cards with reported balances I don't think I would have been able to catch these 2 points due to individual card utilization either.

[Anonymous]

So today my Discover reported 10% UTI (Amazon inventory purchases), lost the same 2 points on Experian.

[Anonymous]

I'd say it's a pretty solid fact at this point that a single card at over 8.9% utilization (with aggregate utilization remaining ideal) can result in a minor score ding.

[Anonymous]

My individual UTI should be under 8.9% again next month, we'll see if I regain them again.

[bondsandloan]

Yup sounds about right. My wife's card - one of the-went over 8.9% and she was dinged 2 points last month.