A hit on both reports???

[Anonymous]

I am at 18% over all utility as of today, up from 11% overall. My TU took a 12pt hit and my EQ took a 14pt hit. I have been at a much higher utility before, and never took that big of a hit.  Is it just me, or is that a little excessive? And can someone please explain to me what rebucketed means.  Any help would be great.

[MarineVietVet]

I just posted this excellent explanation of "bucketing" given by llecs.

I'm sure OP and others have seen this, but I use the college and bell curve analogy. Ever have that one professor who grades on a curve? If you take a test and you get an 80% on that test and if you have the best grade in the class, then under a bell curve-grading system, you have an "A". FICO scoring is similar. Your FICO is compared to everyone else's FICO in a dozen or so scorecards or buckets.

You can only be in one from what I understand, but if you have a major baddie, then you are compared, score-wise, to everyone else who has a major baddie. In other words, you aren't compared directly to someone who has a pristine report. Another example is length of history. It wouldn't be fair to compare two people in the same scorecard if one is 21 and has very little credit and the other is 60 with a 40 year history. Newbies are compared to newbies, folks with judgments are compared to others with the same, and so on. This is why Person X with no CCs sees a large increase when the first is added when compared to Person Y who sees a loss after adding his 15th. Or another example may be that you could lose points when the last baddie drops because your bucket changes and you are now being compared directly to others with better credit. You're low man on the totem pole, but in short time that score bounces back up.

[llecs]

And to add, I don't think you were rebucketed, OP, because both CRs changed at the same time (I'm guessing). A drop like that for an increase in util, especially when org. hovering around the 10% mark, isn't uncommon. I would have guessed a 10-15 point increase myself. Util gets really touchy at those levels and can really be sensitive if you added a new TL with a balance, which may or may not be the case here.

[Anonymous]

Okay, thanks for the explantion, it really helped. I don't feel so bad now. I am paying it down next week, so hopefully I will regain those points.

[Anonymous]

Marinevietvet has a good explanation of rebucketing.  Let me take it just a step further using his example.  An 89 is a strong "B" range score, but when the class curve brings it up to a 91 (undeniably a better grade), now it is no longer a strong grade in its class but a weak grade in its class (a strong "B" to a low "A.")  It's like the rpms on your truck dropping as you shift into a higher gear which typically requires more rpms than a lower gear.

[MarineVietVet]

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@Anonymous wrote:

Marinevietvet has a good explanation of rebucketing.  Let me take it just a step further using his example.  An 89 is a strong "B" range score, but when the class curve brings it up to a 91 (undeniably a better grade), now it is no longer a strong grade in its class but a weak grade in its class (a strong "B" to a low "A.")  It's like the rpms on your truck dropping as you shift into a higher gear which typically requires more rpms than a lower gear.

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It wasn't my explanation. This was stolen borrowed directly from llecs. I'm stll trying to grasp the concept of bucketing myself.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[llecs]

I just made it up. What do I know?! My FICO advice is marginal at best.

[Anonymous]

You said you would have guessed a 10-15 point increase? I'm trying to figure out why it could have increased, or did you mean a decrease.( just trying to make sure I understand)  Also, I did apply for and was approved for another card( I got it to replace one of my old cards that has an af) that has a much higher limit. It hasn't shown on the report yet, but do you think it will help? It will bring my utility waaay down since the limit is so high compared to what I have now. Or will I crash and burn some more b/c of the new TL, and just have to wait to build those pts back.

[llecs]

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@Anonymous wrote:

You said you would have guessed a 10-15 point increase? I'm trying to figure out why it could have increased, or did you mean a decrease.( just trying to make sure I understand)  Also, I did apply for and was approved for another card( I got it to replace one of my old cards that has an af) that has a much higher limit. It hasn't shown on the report yet, but do you think it will help? It will bring my utility waaay down since the limit is so high compared to what I have now. Or will I crash and burn some more b/c of the new TL, and just have to wait to build those pts back.

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Wooops....decrease. I misspoke.

I can't remember your entire post, but generally a new TL will decrease a FICO score, but only for a short while (year or less). The damage is less if it helps your mix of credit (if you have a couple or fewer open CCs) or utilization. I gained points when I added my first 3 CCs.

[Anonymous]

Okay, I gotcha! Thanks again