Experian FICO 2 dropped

[SouthJamaica]

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@Thomas_Thumb wrote:

EX score 2 does calculate a psuedo utilization for no preset spending limit (npsl) AMEX charge card. Utilization is calculated based on current balance/high balance. I saw a couple score drops on EX score 2 when CB/HB was 100% - no associated change on EX score 3, TU score 4 or EQ score 5.

I suspect AMEX is not in the aggregate calc because the card is classified as an open account with 1 month terms. My other cards are classified as revolving accounts.

I need to re-visit some old 3B reports specific to EX score 2 and aggregate UT. Unfortunately, the front end 3B data summaries appear to be based on Fico 8 so I can't use that to tease out AMEX contribution (or lack of) for EX score 2.

Charges on my AMEX card are relatively low. So, whether or not it is counted in aggregate wouldn't impact AG UT enough to shift reason codes.

I did get a "no recent revolving activity penalty" when only my AU and AMEX cards reported balances. The penalty dropped my F8 and F9 scores. No reason code or impact on any of the older Ficos. The AU card is included on all the older Ficos. So, I can't isolate the AMEX.

Best case would be for someone with clean file, an AMEX charge card and no AU cards to test. Allow the AMEX to report a balance with all others at $0. If all Fico versions list the "no recent activity penalty" AMEX does not count as a revolver and would not be included in aggregate utilization. If the penalty does not show on EX score 2 but shows on all others, then Fico 98 is counting it as a revolver.

Side note: An AMEX charge card is a credit card with 1 month terms. Thus, there can be an individual credit card utilization impact even if it is excluded in aggregate revolving account utilization.

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You can get the EX FICO 2 negative reason codes from old 3B MyFICO reports.

Open report > Scores > Mortgages > View Analysis (Under EX FICO 2), Scroll down to Factors.

If you want to compare EX to EQ and TU click "Compare"

[Thomas_Thumb]

I think you need an active paid service to do that. I don't have one. I saved my reports as PDFs on a hard drive. The reports list reason codes.

Last payment I made to Fico for a product was 2020. Thus, no Fico 10/10T scores for me.

Below is a link to an old thread describing my "no recent revolving accounts" penalty on Fico 8, Fico 9 although I had a BoA AU card and AMEX charge with balances. The 3B report shows Auto EX score 2 listing  "no recent balances on your revolving credit accounts" reason code although I had a $1997 balance on my AMEX. Furthermore it lists "you've made heavy use of your available revolving credit".

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AG-UT-at-0-0-with-2-Cards-Reporting-Fico...

The explanation for the apparent contradictory statements is:

1. The AMEX charge card was looked at on an individual card basis. The charge of $1997 was not all that high but it represented 100% card psuedo utilization due to current balance being the high balance up to that point. So 100% UT => Heavy use.

2. The AMEX charge card is not considered a revolving ACCOUNT. Furthermore, the BoA AU card $576 balance was not included as a revolving account. The revolving accounts considered by Fico all had $0 balances => no recent balances on revolving accounts.

The 0% aggregate utilization in the summary clearly indicates Fico 8 is not including the AU balance or AMEX balance in its calculation. We know NPSL charge cards are ignored in the aggregate UT calculation for EQ Fico score 5 and TU Fico score 4. I believe that's true for EX score 3 and EX Fico score 2 as well because, the account is classified as open NOT revolving.

The main question left unanswered is whether or not AU revolving accounts are included in aggregate UT calculations on the older Fico models. Data from other reports/posts indicates Fico 04 models include them but Fico 98 may not.

[KizzieB]

@Thomas_Thumb  @SouthJamaica Very astute.  When I looked into my EX 2 score analysis data from my current 3B (760 score), it lists "Short Revolving History".  This is a new factor listed for me from my previous 3B (779 score).  My EX AAoA is 8 yrs 8 mos so in my mind, the history isn't a factor but learning that logic doesn't always play out in the FICO algorithms.  Still don't quite understand what this all means but I def agree with your previous feedback that outside of the payment and credit line increase, something else played a factor in dropping my score.  Fascinating stuff.  Thanks to you both for the different perspectives.  I'll continue to monitor and dig deeper.  

[SouthJamaica]

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@KizzieB wrote:

@Thomas_Thumb  @SouthJamaica Very astute.  When I looked into my EX 2 score analysis data from my current 3B (760 score), it lists "Short Revolving History".  This is a new factor listed for me from my previous 3B (779 score).  My EX AAoA is 8 yrs 8 mos so in my mind, the history isn't a factor but learning that logic doesn't always play out in the FICO algorithms.  Still don't quite understand what this all means but I def agree with your previous feedback that outside of the payment and credit line increase, something else played a factor in dropping my score.  Fascinating stuff.  Thanks to you both for the different perspectives.  I'll continue to monitor and dig deeper.  

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The fact that something suddenly appears in your list of negative reason codes doesn't necessarily mean that it's a new issue. It is more likely that it has just moved up in the hierarchy of reason codes, due to the demotion of the code that was removed. The list which is shown in the graphic interface isn't the whole list, it's just the tip of the iceberg.