@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:
@gen_zod wrote:Thanks for the DP. I'm currently trying to figure out how to increase my Fico Auto 8 and Fico Auto 9. My perfect payment auto history is not making huge gains (specifically EQ).
My experience is that perfect payment history doesn't improve your score over time. Either you have it or you don't. If you have it, great. If you move from imperfect to perfect, that will improve your scores. But you're not going to get more points from continuing to be perfect.
In my experience the best way to improve FICO 8 and FICO 9 scores, including auto scores, is:
1. Keep revolving utilization as low as possible (but have at least one account report some small balance)
2. Get aggregate installment utilization to 9% or less (but not zero)
3. Make no new credit applications
One would think that auto loan performance is a big factor in auto scores, but I have not found that to be the case.
Of course it matters
Is the reason my score isn't 850 even with a clean sheet, and why Cassie is non-trivially lower than I am. Aggregate payment history (to be clear, time since open without deliquency / derogatory in aggregate for all tradelines) does matter.
There is explicitly a "no recent auto loan activity" in the AU industry options but I agree it's probably not a huge score thing, 20ish points which /shrug. Auto loans are stupid easy to get underwritten anyway, this is the last score I worry about.
Let's say A and B each have an AoOA of 15 years, and an AAoA of 8 years.
All other things in their reports are equal except that B had 5 negatives 7 years ago which have aged off, while A had none.
Is it your position that A would have a higher FICO score than B because he has a longer history of perfect payments?
A may have a higher score if they are an aging breakpoint beyond B.
That said an optimized file can get to 850 at 8 years so the analysis breaks down.
In the example I gave their aging factors were all identical. The only difference in the profiles was that one had a 7 year perfect record while the other had a 15 year perfect record, but that fact did not show up in the reports because the negatives had all aged off.
You know that their scores would be equal.
Once your profile is clean, it's clean.
Ah I misread. You are correct, same age same files regardless what happened in the past equivalent scores: FICO is instant in time in that regard.
We're arguing semantics anyway, payment history being the the abscense of information I agree with, but in some cases more tradelines and more age produces better scores, and by definition that has more payment history.
It's arguably why there's a new file scorecard regardless because there isn't enough payment history to score as accurately as say yours or mine.
