Utilization DP

[Thomas_Thumb]

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@keekers wrote:
Is there a thread or a central place where the rules of thumb, thresholds, etc. are located for reference?

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Nothing concise. There is a "credit scoring primer" thread 509 posts long that attempts to pull information together. It does have a lot of useful information. However, I'd hardly call that concise. Do a search and it will come up.

There is no hard definition on what constitutes a Fico score threshold. Kinda like no definition on what might be considered a pain threshold and its association to risk of severe injury.

A child whose finger is pricked and starts crying might indicate a finger puncture is a significant pain threshold. However, an adult might have a finger severed and not cry (likely yell and/or cuss instead). So, how does one identify pain thresholds? Should there be scorecards (young child vs adult) where response level depends on scorecard assignment? Should vocalized decibel output be the indicator for establishing pain thresholds? If yes, what Dba change would be considered a significant threshold for pain as it relates to risk of injury being severe?

Fortunately with credit models the output is numerical. New inquiries, if/when one impacts score, typically causes a 5-7 point drop. A change of that magnitude is sufficient for assessing inquiry count thresholds. So, a change in score of 5 or more points is often used for threshold analysis.

Just a note on inquiries: they can be deduped so a group of them count as one for scoring purposes. They can also be tagged with a 30 day buffer so no impact on score until 30 days has passed. Inquiries are also subject to binning such as : 0,1,2,3,4-5,6-9 and 10+. In this case # of scoreable inquiries needs to change bins to affect score.

[AzCreditGuy]

You want to test Utilization DP? I am moving around money and its interesting how pts go up and down

[Thomas_Thumb]

@AzCreditGuy 

Nice datapoints.

EQ increased 24 points when aggregate UT dropped from 10.6% to 2.7%. Highest card UT was maintained at 51.7%. This isolates aggregate UT from highest card UT. The large increase in score suggests an AG utilization threshold may have been crossed (at 9%, 5% or both?)

Conversely, TU and EX scores both dropped 19 points although AG UT went from 10.6% to 10.4%. Why? Because highest card UT increased from 51.7% to 88.8%. This clearly isolates AG UT from highest individual card UT. The score drop shows how a change in highest individual card utilization can also impact score. The large score drop suggests a threshold (at 69%?) was crossed.

As a further test can you drop TU and EX aggregate UT below 9% while maintaining highest card at 88.8%?  Would it be possible to do this by paying down the 51% UT card? Then check impact on score and provide an update.

[AzCreditGuy]

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@Thomas_Thumb wrote:

@AzCreditGuy 

Nice datapoints.

EQ increased 24 points when aggregate UT dropped from 10.6% to 2.7%. Highest card UT was maintained at 51.7%. This isolates aggregate UT from highest card UT. The large increase in score suggests an AG utilization threshold may have been crossed (at 9%, 5% or both?)

Conversely, TU and EX scores both dropped 19 points although AG UT went from 10.6% to 10.4%. Why? Because highest card UT increased from 51.7% to 88.8%. This clearly isolates AG UT from highest individual card UT. The score drop shows how a change in highest individual card utilization can also impact score. The large score drop suggests a threshold (at 69%?) was crossed.

As a further test can you drop TU and EX aggregate UT below 9% while maintaining highest card at 88.8%?  Would it be possible to do this by paying down the 51% UT card? Then check impact on score and provide an update.

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The Cap 1 is only near maxed at the moment, as they offer a 0% fee to Transfer money into accounts for a BT. I will never use it for a BT since the apr is 29%, I only use it to have that money in accounts for a month or so and pay it off before the free interest grace period is over. The Cap 1 will be back to 0% UTI after 08/28/24

From the prevoius DP points, it was only a matter of Experian catching up and reporting the balance on my Cap 1. It seems Experian is the worst drop off at 39 pts vs 19 from EQ and Trans.

[AzCreditGuy]

Heres another interesting DP in just 3 days my EX and EQ scores have went up 9 to 10 pts. What happened? I believe this is due to the UTI with Citizens going from 51.4% down to 49.86% What I find interesting is my Wells UTI went from 0% to 13.02% for UTI.....Maybe I could have gotten more pts up, if that wasnt there?

[AzCreditGuy]

Another interesting data py between EQ and TU....Seems TU rewards you for more debt vs EQ taking pts away for debt...EQ -3 pts TU 7+ pts ...Ex is not affected