Well, AZEO doesn't really mean much in FICO 8 terms unless you have 4 cards or fewer, even at 5 cards you have more wiggle room and at 9 when talking EX you can have 4/9 reporting a balance.
FICO 2 not so much, cleaning up my balances down to revolving AZEO (and two installment loans which are probably things there for open balances on accounts unlike FICO 8) resulted in 14 point gain, even 7 points on the last breakpoint that appears to be at 20%... which totally sucks to optimize for but I digress.
(Basically if that line holds our usual 3 revolvers + 1 installment and just take the ding on EQ FICO 8 gets blown up if we're talking FICO 2 and appears to be EQ FICO 5 and TU FICO 4 too as I got big movement there too: cleaning up balances then the new math is 10 cards 1 installment, which is laughable to optimize for... I really hope I'm wrong).
I will say I would get stuck at a given score for months or even years at a time on some (EQ FICO 5 for example) and once your credit is mature and if you're not opening accounts or whatever really your only shifts come from balance changes and aging metrics... but if you put the AZEO lipstick on and you're not having balance changes, basically your score flatlines till you hit an aging threshold.
My experience anyway, though recent data suggests there may be more aging thresholds than we thought around AAOA, that's a nice find at least.
@Anonymous wrote:
@Revelate That would definitely suck if the line is at 20%. What did you mean about the 2 loans being there for open balances on accounts unlike on FICO 8? Please explain.
Basically that all the testing I and others did against FICO 8 it appears to be on revolvers only; I got consistent ratios regardless of how many installment loans I had open at the time.
The older models (FICO 04 and earlier) appear to be on accounts with balances, TT had seen that reason code even at AZEO for revolvers but AFAIK he only had 6 accounts at the time and we've had other reports about that from people who have been tracking their mortgage scores.
We didn't have much other than the old Scorewatch (and almost all of those users are now gone) for access to mortgage scores on a frequent basis before Experian released their current service... but so far the intersection of the various datasets (and the reason codes themselves) suggest that it's accounts rather than revolvers and so installment tradelines are included.
For various reasons I'm kicking free money at my auto loan and after I find the top breakpoint I'll see if there's really any point to keeping it open with my mortgage (people including myself have been spouting various theories around mortgages but none of us have proven it conclusively), otherwise I'll have to open up yet another credit card to see if it's exactly at 20% or if some prior information wasn't quite fully correct and it's just revolvers.
Would prefer not to do that just yet but meh, science!
@Anonymous wrote:
@Revelate I thought that’s what you were saying but I thought all accounts were included on all algorithms. I definitely wanted to clarify to make sure that I was understanding correctly.
So now the conventional wisdom is revolvers only for 8 and revolvers plus installment accounts for previous models?
Thank you very much for taking time to explain that .
Yup!