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Accounts with Balances: 2 ➟ 4 (of 4) = EX2 -17pts

Birdman7
Super Contributor

Re: Accounts with Balances: 2 ➟ 4 (of 4) = EX2 -17pts

Yeah I think balance thresholds are there for that very reason. 10% of $1000 definitely is not the risk of 10% of $1 million.

And there’s no doubt that utilization takes precedence over balances in the majority of profiles, but we do know that certain conditions can cause situations where things are treated differently. This is one where it would make sense if one ever did.

It is not treating people differently, but treating the amount owed differently. The more you owe, the higher the risk, no matter what your creditworthiness. JMHO.
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 71 of 73
BrutalBodyShots
Super Contributor

Re: Accounts with Balances: 2 ➟ 4 (of 4) = EX2 -17pts

Yes, I agree completely with the above.

 

Dollars can matter significantly.  When you hear a commercial for CC debt, it's always to the tune of "Are you $15k+ in CC debt?" or if you talk to a friend they may reference that they're "$50k in the hole" etc.  The discussion is always in dollars, as it's the dollars that are the issue.  You don't hear the commercial ask if your utilization is above 30% or your friend say they're utilization is too high to handle and so on.  I actually think it would be unwise if the Fico algorithm didn't consider dollars more significantly in some cases, with massive TCL being one for sure.

Message 72 of 73
Birdman7
Super Contributor

Re: Accounts with Balances: 2 ➟ 4 (of 4) = EX2 -17pts

Agreed.
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 73 of 73
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