Credit mix weirdness

[Anonymous]

It seems to me the presence of a open loan must alter the other utilization award frameworks. It would make sense because now you have a whole different class of utilization to consider and when you don’t have that and you only have one, that’s all the focus is going to be upon, so it appears that having an open loan can alter the awards/penalties for revolving utilization.

It is known that the presence or lack of a loan does alter profiles that’s why that’s one of the questions I always ask in addition to the scorecard segmentation questions. The effects, as far as I know, have not been completely studied or understood so this may be a hint.

It would be a tremendous service if you would keep us updated on your observations.

[Anonymous]

Its not scorecard reassignment. there are many things that affect signal strength of other scoring factors, e.g. the presence of recent inquiries affects your number of accounts with a balance awards/penalties. This could be similar.

[Remedios]

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@Anonymous wrote:
Its not scorecard reassignment. there are many things that affect signal strength of other scoring factors, e.g. the presence of recent inquiries affects your number of accounts with a balance awards/penalties. This could be similar.

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Its definitely weighing utilization differently now.

Before, I could get away with murder,  it doesnt look like it's going to be like that now. 

As far as inquiries,  EQ is bare naked, EX has four but only two scorable.

TU...let's just say US Bank owns it. 8 altogether, 6 scorable till mid june, than going to 4 scorable.

We've already covered wall of new account shame. 

[Anonymous]

I would be willing to bet it’s weighing differently because now it’s considering two categories of utilization. Nevertheless once the newness of the loan wears off there could be a change as well, but I’m just shooting from the hip I have nothing to base this on no evidence.

[NRB525]

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@Remedios wrote:

So, on 04/01 my scores were EX 760, TU 759, EQ 775, utilization on revolving accounts 6%

After the loan reported next week, EX had a spasm to 746  -14, TU -3, EQ -5, ending up with 

EX 746, TU 756, EQ 770

That's not the weird part.

The weird part was, once cards reported new balances, bringing utilization to rounded 2%, I've gained points on EQ, 4 to be exact, and 2 on TU. EX did not budge.

The weird part is that prior to having an active loan, I could go from 1% to 9% aggregate without a single point change ( I dont exceed 29% on individual cards). 

So, in a nutshell, I gained points I didnt previously lost with identical changes.

My utilization in the previous months stayed within same percentage, I did not lose anything for going 1% to 6%, nor did I gain any when paid down to 1% or 2%

That's only FICO 8 classic, I did not pay attention to industry scores, or older neurotic ones. 

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What is "rounded 2%"?

All cards have updated a cycle to get to 2% as seen by the bureaus?

To get to 2% overall utilization, I'd guess you'd end up with some of the cards going to zero reported? Or exact same count of cards with any balance?

[Remedios]

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@NRB525 wrote:

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@Remedios wrote:

So, on 04/01 my scores were EX 760, TU 759, EQ 775, utilization on revolving accounts 6%

After the loan reported next week, EX had a spasm to 746  -14, TU -3, EQ -5, ending up with 

EX 746, TU 756, EQ 770

That's not the weird part.

The weird part was, once cards reported new balances, bringing utilization to rounded 2%, I've gained points on EQ, 4 to be exact, and 2 on TU. EX did not budge.

The weird part is that prior to having an active loan, I could go from 1% to 9% aggregate without a single point change ( I dont exceed 29% on individual cards). 

So, in a nutshell, I gained points I didnt previously lost with identical changes.

My utilization in the previous months stayed within same percentage, I did not lose anything for going 1% to 6%, nor did I gain any when paid down to 1% or 2%

That's only FICO 8 classic, I did not pay attention to industry scores, or older neurotic ones. 

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What is "rounded 2%"?

All cards have updated a cycle to get to 2% as seen by the bureaus?

To get to 2% overall utilization, I'd guess you'd end up with some of the cards going to zero reported? Or exact same count of cards with any balance?

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Its rounded to 2%. Its something like 1.7%, so 2% as far as FICO is concerned. 

All cards have reported, and current utilization is 2% on revolving accounts. 

3 out of 14 reporting a balance, rest are at $0.00. 

Cards that were reporting a balance at 6%, are same cards reporting balance now, only lesser amounts, because SUBs have been met. 

There was no change in number of cards reporting balances. 

These changes are only on TU and EQ. EX did not react to utilization change at all, so it's behaving same way as prior to the loan reporting.

[Remedios]

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@Anonymous wrote:
I would be willing to bet it’s weighing differently because now it’s considering two categories of utilization. Nevertheless once the newness of the loan wears off there could be a change as well, but I’m just shooting from the hip I have nothing to base this on no evidence.

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That's kinda what I was thinking, which honestly makes sense

The fact that it's making sense is throwing me off, because it's not counterintuitive.  I'm used to counterintuitive and "that's just how it is" when it comes to scoring lol 

[Anonymous]

😂😂😂
True.

[Revelate]

Interesting datapoint Remedios, and conversation too Cassie and Birdman.

Apologies I don't have anything insightful to add, mind is still reeling, and I'm thinking my leaving all my scotch back in California might have been the best decision I've made in a while as I'd probably be drunk already this morning.  

[Anonymous]

Vodka, Scotch, and the "Halloween Scorecard". Great thread.