@Tikistrong wrote:We as a couple started with 11 cards almost maxed out at the beginning of the year. We put 6 (wifes) in a DMP in June with the intent of tackling the other 5 with a snowball. We didn't get too far. In an effort to concentrate on a decent credit score for one of us we did a consolidation loan for the other 5 just a couple weeks ago. It will be interesting watching what happens to scores in both scenarios. But, so far the really interesting thing is the DMP. Ran experian yesterday and it shows 86% utilization. But, the score is 744. Report is clean aside from the DMP. 12 total closed accounts, 6 of them with balances. 2 open AU accounts that are at about 11% currently. So, does that mean that the balances on the closed accounts are NOT calculating in the score? I understand that regardless of the score credit would probably still be denied due to the DMP notes. Also, as a side note, Transunion shows 203% utilization....no idea where that comes from. But, that score (vantage so, mehhh) also jumped dramatically.
1. Closed account balances are counted in your aggregate revolving utilization.
2. I'm guessing that the 203% utilization comes from CK, or whatever other site at which you are looking, counting both the closed accounts and the debt management plan.
@Tikistrong wrote:So, if closed accounts are included in utilization for scoring why would the score jump so dramatically? The 744 score is directly from Experian. The score prior was low 600's. Utilization has gone from around 92% to 86% according to Experian. That's the only significant factor that has changed in the past 6 months or so.
If you're comparing FICO EX8 to FICO EX8, it jumped for another reason. Did the DMP file frivolous disputes for the 6 accounts you are having them handle? So-called credit repair companies will often do this and their clients can see a temporary jump in score if the disputed tradelines are excluded from scoring. When the disputes are resolved, those tradelines will report again and pull their scores back down.
@Tikistrong wrote:
@Slabenstein wrote:
@Tikistrong wrote:So, if closed accounts are included in utilization for scoring why would the score jump so dramatically? The 744 score is directly from Experian. The score prior was low 600's. Utilization has gone from around 92% to 86% according to Experian. That's the only significant factor that has changed in the past 6 months or so.
If you're comparing FICO EX8 to FICO EX8, it jumped for another reason. Did the DMP file frivolous disputes for the 6 accounts you are having them handle? So-called credit repair companies will often do this and their clients can see a temporary jump in score if the disputed tradelines are excluded from scoring. When the disputes are resolved, those tradelines will report again and pull their scores back down.
It's not credit repair at all. Report was clean. The only thing bringing down the score was utilization I believe. I'm too new to this to know honestly. Just trying to figure it out. It's a non profit debt management program. Plus it's been 6 months. Not sure if the original score was Fico 8. I think it may have been Fico 9 because it was from Wells Fargo.
If you go to https://www.annualcreditreport.com/, you can tell pretty easily whether they disputed the tradelines. But since it's a non-profit debt management, I doun't think they would have. Comparing FICO9 to FICO8 could part of the difference you're seeing. They're different alorithms, so for some profiles the difference in score can be significant.
@Tikistrong wrote:So, if closed accounts are included in utilization for scoring why would the score jump so dramatically? The 744 score is directly from Experian. The score prior was low 600's. Utilization has gone from around 92% to 86% according to Experian. That's the only significant factor that has changed in the past 6 months or so.
Closed account balances ARE included in aggregate utilization. They were included when the accounts were open, and are included when the accounts are closed.
I don't know why your score would have jumped. And I don't know anything about debt management plans, or their effect or non-effect on scores.
I'm reviving this because I think the utilization on closed accounts in a DMP is NOT counted for scoring. I'm looking for input from the experts because I really want to know how this works. I received an email today from Experian saying my utilization is at 21%. If my DMP cards were included it would be at least 82%. I couldn't believe how much my score jumped after going into debt management. I had chalked it up to paying down the cards and having them no longer "maxed out". But, this email seems to indicate they aren't being included at all. If someone has another explanation please chime in. Thank you!!
