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Testing Credit Card Utilization Thresholds

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Frequent Contributor

Re: Testing Credit Card Utilization Thresholds

The only chenge in my EX FICO 8 today, was my AU Sams Club updated the $10K limit that wasn't posting before and my aggregate UT went from 32.09% - 29.48%. With that only change in my profile, my score increased 15 points, to 749 today. So I must have crossed a threshold with that 29.48% aggregate UT. More to come in the next week.

Starting Score: 589/599/598 5/8/14
FICO® Score 8: EX 707 TU 705 EQ 708 06/19/20
Goal: 740 across all bureuas
Message 41 of 119
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Super Contributor

Re: Testing Credit Card Utilization Thresholds

@mowglidude Where are you getting your utilization percentages? Are you calculating them yourself? If so, where are you getting your data, they have to be truncated. And if you’re using the frontend from any CMS, that’s totally unreliable as they don’t do proper rounding like the algorithm does.

I suspect you’re using the utilization from the frontend and your real utilization dropped below 29%, if not, there’s another cause of the change.

 

that's one of the minutiae, trips up a lot of people, the algorithm rounds everything up, when it comes to money and amounts under a dollar are truncated when reported.  

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 42 of 119
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Frequent Contributor

Re: Testing Credit Card Utilization Thresholds


@Birdman7 wrote:

@mowglidude Where are you getting your utilization percentages? Are you calculating them yourself? If so, where are you getting your data, they have to be truncated. And if you’re using the frontend from any CMS, that’s totally unreliable as they don’t do proper rounding like the algorithm does.

I suspect you’re using the utilization from the frontend and your real utilization dropped below 29%, if not, there’s another cause of the change.

 

that's one of the minutiae, trips up a lot of people, the algorithm rounds everything up, when it comes to money and amounts under a dollar are truncated when reported.  


I am using the numbers EX is using, to match their numbers. Then simple math from there. Using the utilization from the frontend meaning? No other changes than that today. Yesterday was 15 points lower. 

Starting Score: 589/599/598 5/8/14
FICO® Score 8: EX 707 TU 705 EQ 708 06/19/20
Goal: 740 across all bureuas
Message 43 of 119
Highlighted
Super Contributor

Re: Testing Credit Card Utilization Thresholds


@mowglidude wrote:

@Birdman7 wrote:

@mowglidude Where are you getting your utilization percentages? Are you calculating them yourself? If so, where are you getting your data, they have to be truncated. And if you’re using the frontend from any CMS, that’s totally unreliable as they don’t do proper rounding like the algorithm does.

I suspect you’re using the utilization from the frontend and your real utilization dropped below 29%, if not, there’s another cause of the change.

 

that's one of the minutiae, trips up a lot of people, the algorithm rounds everything up, when it comes to money and amounts under a dollar are truncated when reported.  


I am using the numbers EX is using, to match their numbers. Then simple math from there. Using the utilization from the frontend meaning? No other changes than that today. Yesterday was 15 points lower. 


@mowglidude that's what it is, your percentages are off. the display we call the frontend that you're seeing on Experian does not show you the calculations from the algorithm.

 

it's a separate program that calculates it itself and it rounds differently and therefore you're getting incorrect results. You need to use an Excel spreadsheet and type in the amounts reported yourself and let it average the column and you will see your true utilization. 

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 44 of 119
Highlighted
Super Contributor

Re: Testing Credit Card Utilization Thresholds

By the way don’t use the amount reported from your statement, use what was reported to the bureau, which is truncated, then average it with Excel.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 45 of 119
Highlighted
Frequent Contributor

Re: Testing Credit Card Utilization Thresholds


@Birdman7 wrote:

@mowglidude wrote:

@Birdman7 wrote:

@mowglidude Where are you getting your utilization percentages? Are you calculating them yourself? If so, where are you getting your data, they have to be truncated. And if you’re using the frontend from any CMS, that’s totally unreliable as they don’t do proper rounding like the algorithm does.

I suspect you’re using the utilization from the frontend and your real utilization dropped below 29%, if not, there’s another cause of the change.

 

that's one of the minutiae, trips up a lot of people, the algorithm rounds everything up, when it comes to money and amounts under a dollar are truncated when reported.  


I am using the numbers EX is using, to match their numbers. Then simple math from there. Using the utilization from the frontend meaning? No other changes than that today. Yesterday was 15 points lower. 


@mowglidude that's what it is, your percentages are off. the display we call the frontend that you're seeing on Experian does not show you the calculations from the algorithm.

 

it's a separate program that calculates it itself and it rounds differently and therefore you're getting incorrect results. You need to use an Excel spreadsheet and type in the amounts reported yourself and let it average the column and you will see your true utilization. 


The amounts reported to the credit bureaus are rounded up, not to the penny. Does that matter? So I just type in what my balnces are reporting and divide that by my total credit limits? Wouldn't it be the same?

Starting Score: 589/599/598 5/8/14
FICO® Score 8: EX 707 TU 705 EQ 708 06/19/20
Goal: 740 across all bureuas
Message 46 of 119
Highlighted
Super Contributor

Re: Testing Credit Card Utilization Thresholds

@mowglidude That’s what I’m saying whatever the bank reports to the bureau is truncated for the metro2 format, so they’re zeroed out, whole dollars. Then you have to do the sum of reported balances over the sum of credit limits of all of them and round up result. @CassieCard can explain it more eloquently. 😉

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 47 of 119
Highlighted
Super Contributor

Re: Testing Credit Card Utilization Thresholds

If you go to Experian or whatever you’re going to see they are rounded to the even dollar as far as the bureau knows, so that’s the information the algorithm gets, but then you have to sum reported balances over TCL, then and round up and that’s the percentage the algorithm uses.

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 48 of 119
Highlighted
Super Contributor

Re: Testing Credit Card Utilization Thresholds

And I bet when you do, you’ll see you crossed that threshold because the threshold is at 29% and if you hit 29.01%, the algorithm sees 30%
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 49 of 119
Highlighted
Super Contributor

Re: Testing Credit Card Utilization Thresholds

As a matter fact there’s a great thread that Cassie did that explains you can actually do the exact percentage and even add a penny, I think because it’s truncated; hopefully she’ll link that thread so you can read it, it’s pretty cool!
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

Oldest/average age varies by bureau. Estimates above.


Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 50 of 119
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