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Utilization 9% --> 8%; FICO 8 +7

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Anonymous
Not applicable

Re: Utilization 9% --> 8%; FICO 8 +7


@SouthJamaica wrote:

Confirming that the flip from rounded 9% to rounded 8% in aggregate utilization actually affected FICO 8, today the aggregate utilization oscillated back from 8% to 9% .... and 7 points dropped off.

That's very interesting!

 

In that topic I started, 'Utilization Intervals, Brackets, etc.', @Creditguyindixie posted that he believes all division calculations are rounded up.

This would occur prior to being compared to FICO breakpoints (10%, 30%, etc.). 9.00 stays at 9, 9.01 gets rounded up to 10. In mathematics, it's a ceiling function - ⌈9.00⌉ = 9,  ⌈9.01⌉ = 10.

 

For your 9% figure,  if your  ((Sum of statement balances)/(Sum of credit limits) * 100 ) > 9.00, that would be 10 inside the FICO algorithm, and hit the 10% threshold, if Creditguyindixie is correct about the rounding method.

Message 21 of 29
SouthJamaica
Mega Contributor

Re: Utilization 9% --> 8%; FICO 8 +7


@Anonymous wrote:

@SouthJamaica wrote:

Confirming that the flip from rounded 9% to rounded 8% in aggregate utilization actually affected FICO 8, today the aggregate utilization oscillated back from 8% to 9% .... and 7 points dropped off.

That's very interesting!

 

In that topic I started, 'Utilization Intervals, Brackets, etc.', @Creditguyindixie posted that he believes all division calculations are rounded up.

This would occur prior to being compared to FICO breakpoints (10%, 30%, etc.). 9.00 stays at 9, 9.01 gets rounded up to 10. In mathematics, it's a ceiling function - ⌈9.00⌉ = 9,  ⌈9.01⌉ = 10.

 

For your 9% figure,  if your  ((Sum of statement balances)/(Sum of credit limits) * 100 ) > 9.00, that would be 10 inside the FICO algorithm, and hit the 10% threshold, if Creditguyindixie is correct about the rounding method.


It is clear to me that EX is rounding up and down, and that the score moves with the rounded percentage not the actual percentage. It treated 8.95% as 9%, 8.14% as 8%, and today is treating 8.93% as 9%.

 

This is based on daily realtime observation over a period of about 4 months.

 

I just randomly visited some of my older EX reports to test this and confirmed:

 

12.25% = 12%

 

8.95% = 9%

 

6.43% = 6%

 

9.16% = 9%

 

This observation applies only to EX, and only to aggregate revolving utilization percentages.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 22 of 29
Anonymous
Not applicable

Re: Utilization 9% --> 8%; FICO 8 +7


@SouthJamaica wrote:

It is clear to me that EX is rounding up and down, and that the score moves with the rounded percentage not the actual percentage. It treated 8.95% as 9%, 8.14% as 8%, and today is treating 8.93% as 9%.

 

This is based on daily realtime observation over a period of about 4 months.


So your own calculated aggregate utilization moved from 8.14% to 8.93%, and you lost 7 points. That really shakes up the common wisdom on these forums.

 

Thanks for starting the topic and posting all that!

Message 23 of 29
SouthJamaica
Mega Contributor

Re: Utilization 9% --> 8%; FICO 8 +7


@Anonymous wrote:

@SouthJamaica wrote:

It is clear to me that EX is rounding up and down, and that the score moves with the rounded percentage not the actual percentage. It treated 8.95% as 9%, 8.14% as 8%, and today is treating 8.93% as 9%.

 

This is based on daily realtime observation over a period of about 4 months.


So your own calculated aggregate utilization moved from 8.14% to 8.93%, and you lost 7 points. That really shakes up the common wisdom on these forums.

 

Thanks for starting the topic and posting all that!


What makes it possible is this new EX subscription. It's amazingly informative to have daily reports and FICO scores.

 

Unfortunately, like the MyFICO monitoring products, it's expensive.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 24 of 29
Anonymous
Not applicable

Re: Utilization 9% --> 8%; FICO 8 +7


@SouthJamaica wrote:

What makes it possible is this new EX subscription. It's amazingly informative to have daily reports and FICO scores.

 

Unfortunately, like the MyFICO monitoring products, it's expensive.


Is that Experian CreditWorks Premium for $24.99 a month? I have that now after signing up for the $4.99 first month trial. I was thinking of canceling it after I get updates next week to changes from 0.47% aggregate to 7% aggregate. And 7% individual utilization on each card with 2 cards total. So number of accounts with balances will change from 1 to 2. Not a great report to use for comparison, but next month's at 6/6/6 util will be perfect for that.

 

I also have the $39.95 myFICO Ultimate 3B+, and I like it a lot, but ECP updates are definitely more granular than myFICO. I'm mostly interested in TU updates. If TU had an ECP like service I'd probably stick with that exclusively.

Message 25 of 29
SouthJamaica
Mega Contributor

Re: Utilization 9% --> 8%; FICO 8 +7


@Anonymous wrote:

@SouthJamaica wrote:

What makes it possible is this new EX subscription. It's amazingly informative to have daily reports and FICO scores.

 

Unfortunately, like the MyFICO monitoring products, it's expensive.


Is that Experian CreditWorks Premium for $24.99 a month?

 

Yes that's the one. I find it to be an awesome product. Daily EX report plus 7 EX scores on a daily basis. I especially love that I can compare the mortgage score's behavior to that of FICO 8.

 

I have that now after signing up for the $4.99 first month trial. I was thinking of canceling it after I get updates next week to changes from 0.47% aggregate to 7% aggregate. And 7% individual utilization on each card with 2 cards total. So number of accounts with balances will change from 1 to 2. Not a great report to use for comparison, but next month's at 6/6/6 util will be perfect for that.

 

I also have the $39.95 myFICO Ultimate 3B+, and I like it a lot,

 

I have that too, certainly the best for completeness, but does not give that 'real time' precision EX is giving me, which frequently enables me to pinpoint the precise reason for a score change.

 

but ECP updates are definitely more granular than myFICO. I'm mostly interested in TU updates. If TU had an ECP like service I'd probably stick with that exclusively.

 

For me it works out well because EX is by far the most important bureau for me. And TU's daily service, to which I do subscribe, is junk in my book.


 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 26 of 29
Anonymous
Not applicable

Re: Utilization 9% --> 8%; FICO 8 +7

Just an FYI, CWP is $19.99 a month in the app. Same product at a lower price  

E82B954C-9AEB-4F65-BA6F-988297356269.jpeg

 

 

Message 27 of 29
SouthJamaica
Mega Contributor

Re: Utilization 9% --> 8%; FICO 8 +7


@Anonymous wrote:

Just an FYI, CWP is $19.99 a month in the app. Same product at a lower price  

E82B954C-9AEB-4F65-BA6F-988297356269.jpeg

 

 


Thanks.

You just saved me $15 month.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 28 of 29
NRB525
Super Contributor

Re: Utilization 9% --> 8%; FICO 8 +7

The next step is to replicate this actual Aggregate Utilization change, actual percentage not EX display rounded percentage, when that single card utilization is not crossing 10% on its way to a zero value.

Absent that, this score change is caused by individual card utilization, individual card going to zero, not aggregate utilization.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 29 of 29
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