Does a CLD lower FICO score?

[Thomas_Thumb]

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@CreditDunce wrote:

The codes are for two different models.  The auto insurance model and the home insurance model.  Some codes are for both models.  Some codes are only for one of the models.  It was one of the things that makes it difficult to make sense of the codes.  When I found duplicate codes,  I used the more stringent codes on my scratch pad.

When I was calculating my average bank CL, I wasn't sure about my CU CC's and my target CC.  Target is backed by a TD Bank and it is coded as a credit card, not a charge card.  It was just a curiosity thing.  Even if I was below the cutoff, my biggest negative would be all of my new credit.

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At the bottom of the reason code list are links to pdf files specific to auto and home.

Best I can tell are:

1) codes 3030- 3038 relate to Auto and specify a max threshold of $10,533

2) codes 3039 - 3045 also relate to Auto and specify a max threshold of $7501

3) codes 3295 - 3300 relate to Home and specify a max threshold of $13,002.

[Anonymous]

Hey CD... Your theory that the two families of ACL codes I mentioned are explained by belonging to Home and Auto was the first thing that jumped to my mind when I saw it yesterday.  But as TT just pointed out, there's a hyperlink that takes you to a much more detailed breakdown for each reason code, and when I did that I saw that all the links for both families pointed to a document that said they were for Auto codes.  That's why I said at the time that one of the families must belong to an older model.  Here's an example, the bottom rung of each family.

3030	Average Credit Line on Bank Revolving Accounts is $725 or Less more info

3039	Average Credit Line on Bank Revolving Accounts is $1,167 or Less more info

[Anonymous]

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@CreditDunce wrote:

The codes are for two different models.  The auto insurance model and the home insurance model.  Some codes are for both models.  Some codes are only for one of the models.  It was one of the things that makes it difficult to make sense of the codes.  When I found duplicate codes,  I used the more stringent codes on my scratch pad.

When I was calculating my average bank CL, I wasn't sure about my CU CC's and my target CC.  Target is backed by a TD Bank and it is coded as a credit card, not a charge card.  It was just a curiosity thing.  Even if I was below the cutoff, my biggest negative would be all of my new credit.

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I think that is likely to be mine too.  My TransUnion insurance score is really low (darnit!) -- at least given how high my FICO scores are (810s currently).  I wish there were easier ways to test the two insurance models, without spending a lot of money on it.  What I can say with certainty is that my FICO scores are great, my ACL is at least 11k, and I have no auto accounts, retail accounts, or finance company accounts

Since so many of my accounts are new, my guess is that this is what is depressing my score.  The insurance models appear to penalize that heavily.  There's also a few weird things that I can't control, e.g. LN punishes a person if his oldest account is an installment loan. 

[Thomas_Thumb]

CGID -

What were your TU CBIS scores if I may ask? Trying to get a better handle on the degree which new accounts impact these scores. Elim pasted a nice trend in another thread which appears to show impact of new accounts on TU Home CBIS score over time. I wonder if you show a similar trend.

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/quot-Credit-based-insurance-score-quot/m-...

[Anonymous]

My TU auto score has gradually declined from 887 to 855 in the last 12 months.  (Several new cards during that time.)  It would be interesting to see what my Auto score was 16 months ago (I obtained three news cards 13-15 months ago.)

Do you know how sensitive the TU score is to number of credit cards reporting a positive balance?  It's possible that several cards are currently showing a balance, probably 7-9 out of 14.

For folks reading this thread, and who may be unfamilar with what the numbers mean, a score of 887 is not terribly great and a score of 855 is substantially worse.  

My FICO 8 scores have also taken a hit as I have added cards but to a far lesser degree.  I have declined from 835 to 805 on my FICO 8.  A FICO 8 of 805 is extraordinarily good whereas an auto score of 855 is the equivalent of the high 600s I think.  (I.e. "fair")

[Thomas_Thumb]

CGID,

You can get both your home and auto score trends over a two year or greater timeframe though the link I provided to CK depending on how long you have been a member at CK. Let me know if you have issues getting the trended data.

https://www.creditkarma.com/myfinances/scores/insurance#home

Also, here is the rating scale direct from TU:

P.S. If we ever want to get something going on CBIS, people need to share CBIS scores and relevent information regarding their profiles.

TU CBIS is used by some insurers and scores are available free through CK. LexisNexis is the dominant player and those scores cost $$$. Nonetheless, the LN and TU models have similarities and advice and a "rules of the road" strategy could be built off of TU CBIS reason codes and partially validated by free "test data" scores.

[iv]

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@Anonymous wrote:

Hey CD... Your theory that the two families of ACL codes I mentioned are explained by belonging to Home and Auto was the first thing that jumped to my mind when I saw it yesterday.  But as TT just pointed out, there's a hyperlink that takes you to a much more detailed breakdown for each reason code, and when I did that I saw that all the links for both families pointed to a document that said they were for Auto codes.  That's why I said at the time that one of the families must belong to an older model. 

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Ah... so, one of the not-very-clear parts of the LN reason codes file...

It does list every possible reason code, yes.  But what it doesn't mention is that not every reason code will be applied to every file.

Just as with FICO, there are scorecards - and certain reason codes ONLY apply to certain scorecards.  It's one (of many) reasons that some of the LN reason codes seem contradictory.

Take 0124 (Number of Open Oil Company Accounts) and 0138 (Number of Oil Company Accounts Established), for instance, both for Auto.

In 0124, "0 is better", while in 0138, "1 or more is better".... Huh?

Well... the difference is 0124 is only applied to thin-files, and there having an oil company account is a negative.

But once you have a thick-file, 0138 applies, and there NOT having an oil company account is a negative.

That pair at least is clear with careful reading of the reason codes.  Others are less so.

Just remember: the LN doc shows all POSSIBLE reason codes. But not all reason codes in the file will apply to all credit files. And since the scorecard info is NOT published, it's not always clear which are which.

You literally cannot optimize your file for every LN reason code at the same time, and you can only guess at which ones actually will apply to your file. 

[Anonymous]

Hello TT.  The default view was 1 year, but I didn't notice that.  I now see that one can actually look back many years.  Fascinating.

I will try to do a writeup of how my profile has changed over the last few years and give parallel FICO 8 and TU Auto scores.

[Thomas_Thumb]

Here is a thought,

Since you have trends available from CK for TU Auto, TU Home and TU VS3 how about comparing those with TU Fico 08 month by month in an Excel  table and/or Excel trend graph? It is always interesting to see if scores move in the same or different directions.

I show something like that in another thread but, it's kind of messy because I included all TU Fico scores and CK scores were not put on a common graph.

http://ficoforums.myfico.com/t5/General-Credit-Topics/quot-Credit-based-insurance-score-quot/m-p/478...