My advice is NOT to listen to or rely upon TU or EX unless you know your lender uses them. They use Advantage scoring, which has the extra category of balances, in addition to %util. They use a six category model, whereas the real FICO/EQ uses only the five category FairIsaac model. A totally different scoring algorithm... and not the industry standard. If the lender you are migrating towards uses the FAKO Advantange scores offered by TU and EX (which is doubtful),, then care about it. Otherwise, I would put their score, along with any comments or advice offered in their CRs, into the FAKO trash can. I have one in my bath room, if you need to use it. Advice and scores offered by the CRAs are only useful if the lender is using them. Most lenders use FICO, and not the FAKO, so dont be mislead by their scores or advice.
My understanding, from what has been disclosed about the scoring algorithms, is that all take into account the amount of balances outstanding, and not just %util. But Advantage (TU/EX) makes it a separate category in their model, thus making balances outstanding a more prominent factor. EQ/FICO includes it under utilization,and it thus appears can be more readily offset, in a non-zero sum algorithm, if overall %util is lower. Balance alone, or viewed in terms of %util. Just my experience.
Take your dis-Advantage or your FICO. Just know what the lendor is taking.
Message Edited by RobertEG on
10-16-2007 09:52 PMMessage Edited by RobertEG on
10-16-2007 09:57 PM
