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4 figures vs 5 figures

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SouthJamaica
Mega Contributor

4 figures vs 5 figures

Apart from the question of percentages in individual account utilization, I've developed a gut feeling that having an account which reports a 5 figure, as opposed to a 4 figure, balance costs FICO 8 points. E.g. $10,500 vs $9500.

 

Although I occasionally succumb to attractive promo interest rate balance transfer opportunities, I never go over 28% of the limit.  But on those accounts with large limits this sometimes takes me to 10k or more. And I've felt that it cost points.

 

I'm trying to test that now, but may or may not be able to manage it.

 

If anyone else has had experience with this, or is in a position to try to test it, I would be curious to know what you find.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

19 REPLIES 19
Brian_Earl_Spilner
Credit Mentor

Re: 4 figures vs 5 figures

I just crossed from 5 to 4 in my paydown. MyFico didn't notify me of a score change yet, but it notified me that the balances went down on EQ. It was also about 10% of my balance.

 

EDIT: sorry, I just woke up. Re-read your post. My change was for aggregate.

    
Message 2 of 20
SouthJamaica
Mega Contributor

Re: 4 figures vs 5 figures


@Brian_Earl_Spilner wrote:

I just crossed from 5 to 4 in my paydown. MyFico didn't notify me of a score change yet, but it notified me that the balances went down on EQ. It was also about 10% of my balance.

 

EDIT: sorry, I just woke up. Re-read your post. My change was for aggregate.


Thanks. Yeah, I'm talking about individual account utilization. I should have been more clear about that, so I will reword my original post.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 3 of 20
Revelate
Moderator Emeritus

Re: 4 figures vs 5 figures

I don't think it matters at least for FICO 8.

 

FICO 2 though has a reason code that looks suspiciously like balance though think it was aggregate but never really got a chance to test it.

 

What data beyond hunch makes you think this?  My ability to test is limited... if I didn't have escrowed property tax for the Houston home I would probably hit 10k+ once a year easily between that and other expenses but my big spending appears to be done for now.

 

Actually I am fairly certain on EQ FICO 5 that there wasn't in my old limit testing but I didn't have access to FICO 8 then.




        
Message 4 of 20
SouthJamaica
Mega Contributor

Re: 4 figures vs 5 figures


@Revelate wrote:

I don't think it matters at least for FICO 8.

 

FICO 2 though has a reason code that looks suspiciously like balance though think it was aggregate but never really got a chance to test it.

 

What data beyond hunch makes you think this?  My ability to test is limited... if I didn't have escrowed property tax for the Houston home I would probably hit 10k+ once a year easily between that and other expenses but my big spending appears to be done for now.

 

Actually I am fairly certain on EQ FICO 5 that there wasn't in my old limit testing but I didn't have access to FICO 8 then.


It's not based on data but on a gut feeling.  I seem to recall that when I bit on some promotional 0% balance transfer offers, and put together a few 40k credit limits to capitalize on them up to the tune of $11,200 (28%) each, creating my first intentional 5-figure balances... although my overall utilization wasn't raised, my FICO 8's lost some points. I've been thinking about it, and am trying to test it by eliminating all 5-figure balances this time around. 

 

On last go-round I think I had 5 such balances reporting. This time I've eliminated 3 of them, and am working on the remaining 2. But (a) I'm not sure I have enough dough to do it without incurring interest expense, and (b) there's so much other stuff going on in my profile it's not really possible to test any one factor with precision.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 5 of 20
Revelate
Moderator Emeritus

Re: 4 figures vs 5 figures

Well after doing some napkin math I am thinking about leveraging some strategic 0% BT's and if that happens I can certainly help test that.




        
Message 6 of 20
SouthJamaica
Mega Contributor

Re: 4 figures vs 5 figures


@Revelate wrote:

Well after doing some napkin math I am thinking about leveraging some strategic 0% BT's and if that happens I can certainly help test that.


Well if you do it, it will be fascinating to see what happens. You're a better tester than I am Smiley Happy

 

Meanwhile I'll be struggling to reduce my remaining 5-figure balances to 4-figures, while Covid 19 is kicking my butt financially. And if I can  accomplish that, and it's a clear day without other stuff mucking it up, I'll certainly report back on whether there are any apparent tremors.

 

Actually I see that today I moved a 4th account from the 5 figure column to the 4 figure column, but it hasn't reported yet. If there is a score change, however, even in EX, I probably won't be able to swear that it was attributable to that.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 7 of 20
Anonymous
Not applicable

Re: 4 figures vs 5 figures

" seem to recall that when I bit on some promotional 0% balance transfer offers"

could the hit have been from new accounts being added or a pull needed for the promo offer?
Message 8 of 20
SouthJamaica
Mega Contributor

Re: 4 figures vs 5 figures


@Anonymous wrote:
" seem to recall that when I bit on some promotional 0% balance transfer offers"

could the hit have been from new accounts being added or a pull needed for the promo offer?

no, and

no


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 9 of 20
Anonymous
Not applicable

Re: 4 figures vs 5 figures

Perhaps it was simply the amount of cards that went to the 28% threshold, versus it being about the actual balance being 4 or 5 digits?

 

The biggest hit I ever took was $10K BT on a $20K CL, don't recall the actual point loss though. But my guess was that the hit was due to being over 50%. All other balances before or since have all been less than $5K, though on some cards that could hit the 28% easy.  I generally prefer to hover at 18%.

Message 10 of 20
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