All zero penalty 22 points

[Thomas_Thumb]

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@FicoMike0 wrote:

We seem to have confirmed that the az penalty is 22 points, good info.

As far as all the debate about the "why" of it all, I find that a waste of time. There are lots of truncation and shortcuts to simplify the calculations and validations.

A few years ago, I was credit retired, I was unscorable. Did that make me a credit risk? Well, I was an unknown, which is a big risk. I followed the info available here and reached 800s. I haven't changed, my score has. Same income, debts and assets. 

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^ Agree on the waste of time regarding justification. However, it can be helpful to understand the correct basis for the penalty.

I would not say we have confirmed the "all zero" penalty is 22 points. We know others have reported different results. Penalty varies depending on profile details, Fico model and CRA. A penalty of 15-25 points probably covers 80% of cases where profiles don't have 850 buffered scores.

The penalty is for "no recent revolving activity" (NRRA) not "all zeros" (AZ). As illustrated in an above post, it can be assessed even when a credit card reports a balance (AMEX charge card in the above case).