Does anyone know how utilization and utilization thresholds differentiate on clean vs dirty profiles? Do the thresholds apply to clean profiles only ? Is there any data to support how utilization thresholds affect dirty scorecards as opposed to clean ones ?
I do not think the threshholds are different between clean and dirty. There is tons of information on this topic throughout the forums. The big issue is that it is difficult to know 100%. here is some info for reading with references to the FICO 8 scorecards:
I'm in a dirty scorecard and do see improvements in scores as my util goes down.
@TheKid2 wrote:I do not think the threshholds are different between clean and dirty. There is tons of information on this topic throughout the forums. The big issue is that it is difficult to know 100%. here is some info for reading with references to the FICO 8 scorecards:
I'm in a dirty scorecard and do see improvements in scores as my util goes down.
Utilization thresholds should be the same. However, the score response to changes in utilization is scorecard dependent. Each scorecard, clean and dirty, has its algorithms "tuned". Thus, depending on which scorecard your profile resides, your score can change more or less relative to someone elses for a similar change in utilization.
Crossing "thresholds" do not always result in a score change. For example, a given profile with an open installment loan (mortgage) may not experience score drops when a card crosses above 29%, 49% or 69% utilization. However, once the loan was paid off and closed, the same file at some later date now experiences changes in score at a similar change in a card's utilization. The presence of the open installment loan muted the impact of utilization.
See below on signal strength. This was from a presentation for use as an illustration - not an accurate representation. Utilization, in reality, does influence dirty scorecard scores as mentioned above. However, it may be given less weight in total score.
