@masscredit wrote:I usually live by AZEO with my daily driver card reporting 1-6% when it closes and overall UTI of 1%. I had a bunch of expenses for an upcoming trip so I decided to let them along with my other charges post when the statements closed.
TD Bank - $3284/$5000 - $66%
Mercury - $3225/$5000 - 65%
Cap 1 - $850/$3000 - 29%
Ally - $569/$2500 - 23%
Andrews - $0/$3000
OpenSky - $0/$3000
SDFU - $0/$6500
Total UTI - 29%
Score changes -
EQ - 685 - 675 -10
TU - 651 - 646 -5
EX - 651 - 641 -10
Vantage scores got hammered. Those lost 40-50 points. I only use CK to check my reports when I don't pull all 3 to check my scores so those are for entertainment only.
Overall, my real scores didn't take the hit that I expected. I have the cards listed above along with a SSL that is $869/$1500. It's been 7 months since my CH7 BK was DC. Just some data points that might help people. Back to AZEO next month.
I'm not surprised, AZEO is not usually significant for FICO 8's and 9's. I have a hunch that you were more affected by having 2 accounts > 50% than you were by having 4 accounts with balances.
I wonder if you had a chance to check your mortgage scores over the same 2 reports; it would be interesting to see if they were more affected. I predict that they would have been, again more by the 2 accounts > 50% than by the 4 accounts with balance.
@FireMedic1 wrote:Thanks for posting. Could have been worse if you passed 30%. Right on the edge.
I respectfully disagree. There's nothing magical scorewise about 30% aggregate. There is something significant about 30%, though, in individual accounts.
@SouthJamaica wrote:
@FireMedic1 wrote:Thanks for posting. Could have been worse if you passed 30%. Right on the edge.
I respectfully disagree. There's nothing magical scorewise about 30% aggregate. There is something significant about 30%, though, in individual accounts.
I respectfully post this....
"There's no single best credit utilization ratio, but a per-card ratio as well as a total ratio of under 10% indicates optimal credit card management. If that's not possible, it's best to aim for 30% or lower. As your credit utilization ratio increases, your credit score may drop and lenders may see you as a potentially risky borrower. "
https://www.experian.com/blogs/ask-experian/what-should-my-credit-card-utilization-be/
How young/mature is your profile in terms of AAoA and AoOA? Last time I went out of AZEO I took a significiant hit (mainly on FICO 9), but was also with a young profile that was thinner than it is now.
@FireMedic1 wrote:
@SouthJamaica wrote:
@FireMedic1 wrote:Thanks for posting. Could have been worse if you passed 30%. Right on the edge.
I respectfully disagree. There's nothing magical scorewise about 30% aggregate. There is something significant about 30%, though, in individual accounts.
I respectfully post this....
"There's no single best credit utilization ratio, but a per-card ratio as well as a total ratio of under 10% indicates optimal credit card management. If that's not possible, it's best to aim for 30% or lower. As your credit utilization ratio increases, your credit score may drop and lenders may see you as a potentially risky borrower. "
https://www.experian.com/blogs/ask-experian/what-should-my-credit-card-utilization-be/
Yes i've read that many times but in practice nothing happens at 30% aggregate utilization that doesn't happen at 29% or 31%. On "per-card" utilization, 30% is major.
Thanks for the data.
I am a bit surprized that your increase in AG and Individual UT resulted in such a low point drop. I would have estimated a 10 to 15 points penalty for AG UT going to 28.3% plus a 5 to 10 point drop for highest individual UT going to 66%. Total point shift 15 to 25. However, your profile is dirty and dirty profiles react less strongly to changes in UT than clean profiles.
BBS did an extensive study on cards reporting balances with Fico 8 a few years back while maintaining a very low AG UT. His profile was thick and fairly well aged. He saw no point change on EX going from AZEO to all cards reporting balances in 1 card increments - total of 9 cards as I recall. He experienced a small impact on Fico 8 EQ and TU. By contrast, his EQ score 5 (Fico 04 model) dropped more than 45 points. I had previously seen a similar large point drop on EQ score 5 with all cards reporting balances as had CGID.
Thin/young profiles should be more sensitive to a high percentage of cards reporting balances. However, in your case, sensitivity is muted due to the presence of the bankruptcy.
I do not practice AZEO. However, I have seen a large impact on the older Fico model scores when more than 50% of cards report balances. As a guideline, report balances on 50% or fewer accounts - except for those with 1 account in which case it should report a balance. As mentioned above, the newer Fico 8 and Fico 9 models don't penalize much for a high QTY of cards reporting balances - particularly EX.
Vantage score is much more granular for score shifts relating to aggregate utilization than is Fico (Below is a chart of VS3 score vs utilization from 2017 using their score simulator - holding all other factors constant). I plugged in my "clean" profile for the simulator. It shows a 40 point drop (829 =>789) going from 1% AG UT to 27.5% AG UT
Alternatively, It is a widely believed that Fico uses utilization bands for scoring on both aggregate and individual UT.
Given this, does Fico have have aggregate utilization thresholds? - Absolutely it does. Are they the same as individual card thresholds - likely yes, IMO.
Many of us, myself included see a score drop going above 9% AG UT. No score change for me anywhere along the 1% to 8% range. I can't speak about 29% personally never went above 16% on AG UT. In any case, aggregate revolving UT is much more impactful than individual UT on score at the same level of UT.