cancel
Showing results for 
Search instead for 
Did you mean: 

AU effect on AAoA FICO 08

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Super Contributor

Re: AU effect on AAoA FICO 08

Nobody knows how the AA algorithm works.  It's possible that name is used as part of it -- it is just not the sole factor.  We do know that people can have the same last name and be flagged as an AU abuser, and two people can have different last names be considered fine. 

Message 21 of 24
Super Contributor

Re: AU effect on AAoA FICO 08

FICO does not distinguish between bankcards (which have a VISA, MC, Discover, or Amex logo on them) and store cards (which do not).

 

FICO does distinguish between charge cards and credit cards.

Message 22 of 24
Valued Contributor

Re: AU effect on AAoA FICO 08

@CGID: Does that mean a store card That has the AmEx logo on it is a bank card? And how does it treat charge and credit card differently once it distinguishes between them?




Considering BBVA and 5% cards. (Forgive typos, mobile.)(Everything said is Just IMHO.)
Message 23 of 24
Super Contributor

Re: AU effect on AAoA FICO 08


@Birdman7 wrote:
@CGID: Does that mean a store card That has the AmEx logo on it is a bank card?

Yes.  It is considered a bankcard and not a store card.

And how does it treat charge and credit card differently once it distinguishes between them?

 

FICO 8 and 9 ignore charge card balances in calculating utilization.   Thus if you had 1 credit card with a $10 balance and 1 Amex charge card with a 30k balance, FICO 8 and 9 would say that you have a very low utilization.

 

The EX mortgage score uses the highest balance you have ever had on the charge card as a proxy for credit limit in calculating utilization. 

 

I believe the TU and EQ mortgage scores ignore charge card balances (much like FICO 8) but I am not certain.


 

Message 24 of 24