AZEO at < 8.9% vs < 28.9%?

[dmantt99]

Thanks to TT and BBS for your insight.

Since my aggregate is always below 8.9%, it does appear that the driving factor in my score changes is the high individual UTL on the one card that I use the most?  That card doesn't have a high limit ($5500), hence the possibility it can go over 40% at times. 

Do you think that going over 40% individual UTL could really be the cause of a 14-15 point swing?  TT, I have reviewed the 3 reports, the only other changes I see are that the AoYA went from 17 to 19 months (don't know if 18 months is a threshold for new account age?).  File is quiet, simple, stable (boring), 9 accounts, AAoA about 5 years, AoOA about 8 years.

Can you suggest any testing steps I should take?  Thanks again

[Anonymous]

I would say that going from single-digit (ideal) utilization on a single card to 40% on that card while keeping aggregate utilization constant at a low single-digit number could result in a 14-15 point drop depending on profile.

You've got to figure that you're crossing 2 individual card thresholds at 8.9% and 28.9% (the next would be 48.9%).  A 7-8 point drop for crossing each of these thresholds doesn't seem unreasonable to me.  You would likely see another 7-8 point drop if you were to take your card up to 50% reported utilization based on what you've said regarding your profile so far.

A definite threshold exists at 12 months for AoYA and I believe a slight benefit can still be had at 24 months AoYA, but 12 months is the biggest threshold.  TT can comment as to whether or not he believes the mid-point at 18 months matters.  I personally have not heard of a threshold there and if there is one, it would be very minor IMO, perhaps a couple of points.

If you're looking to maximize your score, the best step you can take really is keep AZEO in place with both your aggregate utilization and individual card utilization coming in at a low single-digit number percentage wise.

[Thomas_Thumb]

Aging can be discounted completely as a consideration. The baseline score is from March with the May data showing a one point drop relative to March. Thus, the April data at the high score is not being influenced by aging. The lower score bookends essentially isolate the influencing factor to individual CC utilization.

Side note: I would expect point loss for crossing above utilization thresholds to increase with increasing thresholds. In other words going from 25% UT to 35% UT on highest UT card is < 45% to 55% < 65% to 75% < 85% to 95%. Many profiles don't experience any score drop on individual cards at 9%, 29%. Some profiles don't even experience a drop crossing above 49%.

[Card UT% has muted signal strength on dirty profiles and elevated signal strength on thin/young files - these are well documented and mentioned in Fico documents].

I believe older files with new HPs/accounts under 12 months age may also react more strongly to card UT% than older files with no recent HPs/accounts - this is not so well documented and requires some extrapolation. I see some heightened sensitivity on EQ and TU since each received an HP for a CLI - not associated with new account. SJ's reported score shifts at relatively low UT levels also suggest recent accounts/HPs under 12 months may strengthen response.

[Anonymous]

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@Thomas_ThumbMany profiles don't experience any score drop on individual cards at 9%, 29%. Some profiles don't even experience a drop crossing above 49%.

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TT, I just started a thread with data on how my EX score was impacted 5 points and EQ 2 point from crossing the 8.9% threshold on my AZEO card while keeping aggregate utilization constant [for scoring purposes].

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AZEO-card-28-gt-8-2-5-points/td-p/525788...

[sarge12]

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@Anonymous wrote:

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@Thomas_ThumbMany profiles don't experience any score drop on individual cards at 9%, 29%. Some profiles don't even experience a drop crossing above 49%.

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TT, I just started a thread with data on how my EX score was impacted 5 points and EQ 2 point from crossing the 8.9% threshold on my AZEO card while keeping aggregate utilization constant [for scoring purposes].

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AZEO-card-28-gt-8-2-5-points/td-p/525788...

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BBS...The one card I have that carries a balance...which has my sister as an AU, and all charges on it are hers as well as all payments made by her. That card is over 50% utilization right now, but since all my scores are 825 or better, I question how much effect it has. Then again I might have the 850 trifecta otherwise...who knows?

[Anonymous]

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@sarge12

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BBS...The one card I have that carries a balance...which has my sister as an AU, and all charges on it are hers as well as all payments made by her. That card is over 50% utilization right now, but since all my scores are 825 or better, I question how much effect it has. Then again I might have the 850 trifecta otherwise...who knows?

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Based on what I've seen with my profile and the fact that yours is similar, I'd say you'd likely be in the 840-845 range if that > 50% card were brought down to ideal < 8.9% utilization.  A couple of cycles ago my AZEO card was in the 50's percentage wise and my scores were in the 825-830 range give or take.

[sarge12]

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@Anonymous wrote:

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@sarge12

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BBS...The one card I have that carries a balance...which has my sister as an AU, and all charges on it are hers as well as all payments made by her. That card is over 50% utilization right now, but since all my scores are 825 or better, I question how much effect it has. Then again I might have the 850 trifecta otherwise...who knows?

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Based on what I've seen with my profile and the fact that yours is similar, I'd say you'd likely be in the 840-845 range if that > 50% card were brought down to ideal < 8.9% utilization.  A couple of cycles ago my AZEO card was in the 50's percentage wise and my scores were in the 825-830 range give or take.

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Well BBS...I will likely never know...My sister became an AU and started using that card on my advise. She moved some high interest debt to that card vs one that was in her name with a 20+ percent interest rate. The rate on that card is 5.99%. I could, and would just pay it off...it is about 5100...as a gift, but that would make her mad at me. I care much more about her than I do about ever getting an 850 credit score. She really did not want to even put charges on that card or become an AU on it, but I talked her into it, and even said it would help keep the card active, and also serve as my AZEO card. I knew that it would probably keep me from ever getting 850 credit scores, but it is at least keeping her from paying ridiculously high interest. I would have rather just gifted her 5k, but she would not let me, so I just accept the loss of credit score points. She always pays more than the minimum at least 2 weeks before the due date, but she charges about the same on it so the balance stays around 50% utilization.

[Anonymous]

I can understand and appreciate that.  Family > credit scores, no doubt.