Point Drop Datapoint for 62% UTI

[FICOdawg]

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@SRT4kid93 wrote:

@FICOdawg 

I have missed most of this conversation I have to go back and read all the comments. But I can say definitively that,

Single card utilization hurts your score about 3-5x LESS than aggregate. 

aggregate (or total combined utilization) is what you really want to be worried about. 

I have come fairly close to maxing out single cards and only saw about a 5-7 point reduction. However, if I were to max out my aggregate utilization, we would be talking about 70-90 ish points. 

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Show me where I posted specific cut points in this thread?  That's right, I didn't.     I made a generic comment.    Then, a certain poster used a straw man argument to twist my comment and make all kinds of specific inferences.     The freight train of logical fallacies keeps on rolling.   I don't even read that persons posts, I scroll on by.

I will save you some time, you can find the actual ranges of impact of utilisation (agg and individual). right from FICO as well from Experian.    Without digging, I think I may have even linked them in 2024 on the forum.   I know it's hard to believe but ya know, not everyone is country bumpkin and some are even educated and can read and can/have research FICO topics all on their own....  Crazy, huh?

The entire reason I even joined myFICO was my score tanked after my solar loan and mortgage got paid off and I had high CC utilisation.      I was looking for a boat loan and needed to get my score up to avoid high interest rates.

  You can find many posts of my sharing of utilisation with Thomas as I relatively quickly paid down my cards and I had empirical data points and then I took my annual bonus and wiped out my debt thankfully.    I know it may be shocking but maybe, just maybe, others also have some understanding of the FICO game.

       Did you notice I never asked for how much impact there is  by utilisation type?      If I wanted or needed that info I could have easily asked.      You got baited into this topic by the poster who shall not be named.    It's called trolling.    In the future, if I need a question answered from the forum, I'll ask all by myself.      I don't need a certain FICO crusader to lecture and rescue me on every post 🙄

[BrutalBodyShots]

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@SRT4kid93 wrote:

Single card utilization hurts your score about 3-5x LESS than aggregate. 

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Exactly, @SRT4kid93. Yet, FICOdawg led off with this incorrect statement back early in the thread when OP was talking about a single card moving to 62% utilization with aggregate utilization not crossing any thresholds:

"I'm suprised it wasn't more. Once you start getting north of 50% the utilization penalty bites you hard."

So, either they were incorrect in thinking the discussion was about aggregate utilization when it wasn't (otherwise they wouldn't be "surprised" it wasn't more) or they don't understand that aggregate is the driving force when it comes to scoring, not individual card utilization. Since they are so adament in making sure everyone knows they understand how utilization works, it must mean they misunderstood what OP was talking about in the first place. Rather than argue (their standard protocol) they could have just said "Oh I see, OP was talking about individual card utilization not aggregate... so my statement that >50% biting you hard doesn't apply since this discussion is about a single card." No such luck though, of course. 

[Antredd]

That's an excellent question. Now you got me thinking.

[Antredd]

I thought getting hit that many points when I went over the 30 and 50% threshold on one card seemed too harsh of a point drop. I just paid down the card below 50%, no point rebound as of today.

[FICOdawg]

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@Antredd wrote:

I thought getting hit that many points when I went over the 30 and 50% threshold on one card seemed too harsh of a point drop. I just paid down the card below 50%, no point rebound as of today.

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Racking up 22k on a credit card is going to get a ding.      This is why they put in dollar thresholds so people who get high CL don't slip under the radar.      If this is not a normal amount of spend and a spike shows up you can see why trending of data helps lenders detect changes in spending.

       When I paid off my cards, it wasn't until I paid off the last card in one big chunk did I finally see my scores jump.

[Varsity_Lu]

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@BrutalBodyShots wrote:

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@SRT4kid93 wrote:

Single card utilization hurts your score about 3-5x LESS than aggregate. 

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Exactly, @SRT4kid93. Yet, FICOdawg led off with this incorrect statement back early in the thread when OP was talking about a single card moving to 62% utilization with aggregate utilization not crossing any thresholds:

"I'm suprised it wasn't more. Once you start getting north of 50% the utilization penalty bites you hard."

So, either they were incorrect in thinking the discussion was about aggregate utilization when it wasn't (otherwise they wouldn't be "surprised" it wasn't more) or they don't understand that aggregate is the driving force when it comes to scoring, not individual card utilization. Since they are so adament in making sure everyone knows they understand how utilization works, it must mean they misunderstood what OP was talking about in the first place. Rather than argue (their standard protocol) they could have just said "Oh I see, OP was talking about individual card utilization not aggregate... so my statement that >50% biting you hard doesn't apply since this discussion is about a single card." No such luck though, of course. 

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Please give me a Yes or No answer.  No multi-paragraph explanation.  Just yes or no:

Is there a 49% individual card utilization threshold that triggers a larger point loss?  Yes or no?

[SRT4kid93]

@Varsity_Lu 

It really depends, but for the most part Yes, crossing over 50% will hurt your score more than crossing over 30% would 

[Varsity_Lu]

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@SRT4kid93 wrote:

@Varsity_Lu 

It really depends, but for the most part Yes, crossing over 50% will hurt your score more than crossing over 30% would 

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No, it doesn't depend.  The answer is Yes.  And I didn't ask about crossing 2 thresholds, just one, so your extra statement about crossing 30% is completely irrelevant.

Here's my point: @FICOdawg's passing comment that sparked this dumpster fire was completely correct and accurate. He wasn't wrong.

And yet here we are: arguing about things he didn't say.

[Jnbmom]

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@Varsity_Lu wrote:

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@SRT4kid93 wrote:

@Varsity_Lu 

It really depends, but for the most part Yes, crossing over 50% will hurt your score more than crossing over 30% would 

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No, it doesn't depend.  The answer is Yes.  And I didn't ask about crossing 2 thresholds, just one, so your extra statement about crossing 30% is completely irrelevant.

Here's my point: @FICOdawg's passing comment that sparked this dumpster fire was completely correct and accurate. He wasn't wrong.

And yet here we are: arguing about things he didn't say.

@Varsity_Lu  I agree this post has gone south , but nothing new here with the responders 😞

[SRT4kid93]

@Varsity_Lu 

It does depend. Not only does it depend how many points you will lose.

but I have gone over 50% without losing a single point. 

I also didn't say anything about crossing over 2 thresholds at once. I was comparing the point loss from the 30% to the point loss from the 50% threshold. It was a comparison, I said nothing about passing both at the same time. 

now if we are talking about aggregate utilization you will probably lose points every time if you go over 50%. But single card utilization has far less signal strength. I have also gone from 2% to 90% individual utilization and only lost 4 points. And that crosses over multiple thresholds  

it also depends on which model we are talking about, FICO 9 for example budges far less than FICO 8 for utilization changes (at least in my experience)

so yes it depends in many ways