Credit and utilization thresholds.

[Thomas_Thumb]

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@Aiyvega wrote:

Quick question, I know I read on here somewhere that fico scores are triggered when your utilization is below 90%, 70%, 50%, 30% and 10%. My question is, do those thresholds only apply to individual credit cards or your overall utilization across your revolving credit?

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Below is some feedback direct from Fico as documented in the Tom Quinn & Tommy Lee thread.

Message 71 -

Closed account balance may be considered in balance and utilization characteristics.

Message 73 -

The Fico score considers both overall revolving utilization and the highest utilization on an existing account.

Message 77 -

The models look at revolving utilization in several different ways. Generally speaking, the characteristic values are classed into ranges or intervals for point assessment.

[Changing from one interval to the next is crossing a threshold. Utilization as a characteristic for scoring is classed into ranges. Classifications could differ between individual and aggregate utilization but both are classed which means they have thresholds.]

* Fico rounds to the nearest integer per their answers. I use 9%, 29% and 49% as thresholds vs 10%, 30% and 50%. Why? Because 10% equates to a worse tier than 9%. From my experience crossing above 9% is an important threshold for aggregate UT but appears inconsequential relative to highest card UT (atleast for many posters). On an individual card UT basis, 29% and 49% and higher thresholds begin to have a noticeable influence on score. How much influence depends on scorecard.

Message 78 -

Fico scores evaluate revolving credit both in terms of balance and utilization.

Message 84 -

Generally speaking, revolving utilization tends to have more impact on score than revolving balances.

Message 100 -

Both the number and percent of accounts with balances can be factors in a FICO score calculation.