For those who doubt that small changes in overall utilization can lead to significant score changes in FICO 8, I just had a small isolated overnight change in overall revolving utilization, unaccompanied by any other significant change, which resulted in a 7 point dip in EX FICO 8.
Start: 8 out of 29 accounts reporting balances
1 account over 29%, at 46%
overall revolving utilization of 7.0%
Change: 1 of the 8 accounts reporting balances went from 1% to 18%
overall utilization went from 7.0% to 7.75%
no other changes
EX FICO 8 dropped 7 points.
@Anonymous wrote:It would be interesting to hear what happens to your scores if you drop your overall utilization to < 0.1%. (I.e. 7.75% to 0.1%).
Thomas Thumb and I believe that it is possible that some FICO models may consider the raw dollar value of CC debt in addition to utilization. Your 0.7% increase involved an increase of 3k in debt, due to your huge total credit limit, and your current dollar value of CC debt is probably 30k. It would be interesting to see what happens when your total CC debt goes from > 30k to < $100.
Fico models are pretty clear that $$$ debt is a factor as well as utilization. I even recall SJ speculated about a potential dollar threshold of ($3000?). As with utilization, there might be multiple $S thresholds or QTY of cards exceeding a single tier $$ threshold. Interestingly, the 18% UT on the card does put its balance over $3000 by my calculation.
If SJ's score drop is related to the increase in spend, the most likely cause is an increase in QTY of cards above some dollar threshold - IMO. Of course, it is always possible that account summary data is not a point in time match with data pulled for scoring.
Sometimes I wonder if CRAs might maintain two databases. Some may recall the ping pong scoring CAPTOOL experienced only on TU which was determined to be a collection or tax lien counting/not counting toggle. However, looking at the report summaries both low and high scores showed the same information.
Individual CRA data can be a bit suspect. It is best to have before/after data from all three CRAs.
@Anonymous wrote:It would be interesting to hear what happens to your scores if you drop your overall utilization to < 0.1%. (I.e. 7.75% to 0.1%).
Thomas Thumb and I believe that it is possible that some FICO models may consider the raw dollar value of CC debt in addition to utilization. Your 0.7% increase involved an increase of 3k in debt, due to your huge total credit limit, and your current dollar value of CC debt is probably 30k. It would be interesting to see what happens when your total CC debt goes from > 30k to < $100.
You must have me confused with someone whose financial life is much more orderly and controllable than the one I have
@Thomas_Thumb wrote:
@Anonymous wrote:It would be interesting to hear what happens to your scores if you drop your overall utilization to < 0.1%. (I.e. 7.75% to 0.1%).
Thomas Thumb and I believe that it is possible that some FICO models may consider the raw dollar value of CC debt in addition to utilization. Your 0.7% increase involved an increase of 3k in debt, due to your huge total credit limit, and your current dollar value of CC debt is probably 30k. It would be interesting to see what happens when your total CC debt goes from > 30k to < $100.
Fico models are pretty clear that $$$ debt is a factor as well as utilization. I even recall SJ speculated about a potential dollar threshold of ($3000?). As with utilization, there might be multiple $S thresholds or QTY of cards exceeding a single tier $$ threshold. Interestingly, the 18% UT on the card does put its balance over $3000 by my calculation.
If SJ's score drop is related to the increase in spend, the most likely cause is an increase in QTY of cards above some dollar threshold - IMO. Of course, it is always possible that account summary data is not a point in time match with data pulled for scoring.
Sometimes I wonder if CRAs might maintain two databases. Some may recall the ping pong scoring CAPTOOL experienced only on TU which was determined to be a collection or tax lien counting/not counting toggle. However, looking at the report summaries both low and high scores showed the same information.
Individual CRA data can be a bit suspect. It is best to have before/after data from all three CRAs.
No that wasn't me. I have never seen any evidence of the dollar amount being significant. All my evidence has been that the percentages are significant, without reference to the dollar totals.
@BIGSTARXXX1 wrote:One of your cards went above the 8.9% threshold ; I would imagine that might have contributed somewhat to the drop. I wonder what would happen if you backed that 18% util card down below 8.9% - obviously your overall util would drop as well from 7.75%.
I personally have never seen evidence of an 8.9% threshold in individual card utilization. This month I have multiple accounts which are > 8.9% but < 28.9%