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We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

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Valued Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

Do the FICO scoring algorithms always use truncated balances (e.g., 876.00 v 876.46) to calculate utilization?

27 FICO Scores + 3 VS3. MTG (Mortgage), AUT (Auto), and BKC (Bankcard) are scores 5,4, and 2 from the top.

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Message 31 of 112
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Established Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

FICO has previous released some guidelines about what makes up our scores:

  • 35% payment history
  • 30% utilization
  • 15% credit age
  • 10% inquiries / new accounts
  • 10% credit mix

My question is, are these fixed percentages? Or is it just a rough guideline that actually can vary? And if so, by how much can they vary?

    Total Loan Balance: $28k / $70k

    Total SL: $41.2k
Goal cards:



United 1K - 675,000 lifetime flight miles    |    Chase 6/24
Message 32 of 112
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Established Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

Oh, one more question which I see come up a lot around here (last one for now, I swear!)

 

Why do FICO score simulators work so badly? Is it just that the people who make them don't really understand the scoring algorithms, or are they intentionally wrong for some reason?

 

(For example, I've seen some simlators say my score will drop 20 points if I continue making on-time payments for 2 years).

 

It's a real problem, I think. One poster here recently said they felt like giving up on rebuilding their credit after they saw that anything they did would only cause their score to get worse.

 

Does FICO / MyFICO have plans to make a working simulator some day? I feel like they have everything they would need to accurately predict future scores, but the simulator that they offer currently isn't different than anyone else's

    Total Loan Balance: $28k / $70k

    Total SL: $41.2k
Goal cards:



United 1K - 675,000 lifetime flight miles    |    Chase 6/24
Message 33 of 112
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New Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

Hello Mr. Quinn and Mr. Lee!! Thank you so very much for helping MF members!!

I have a (hopefully) easy question that I've definitely received mixed results with from the experts on this forum!

When a credit card is in good standing and being closed, does it make a difference whether the account was closed by the grantor or by the consumer?

I know there's no scoring impact, but many people here believe a lender may be slightly less likely to lend to a consumer if there are notes throughout the consumer's profile of credit card accounts always being closed by the grantor. Thanks!

Message 34 of 112
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Established Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

Dang, I thought of one more question. Sorry guys Smiley Very Happy This is a rare opportunity to talk to some insiders, so I'm pretty excited for this opportunity and have been putting a lot of thought into questions I've had over the years!

 

This is in regards to Fico 10T (the one that factors in data trends).

 

Question is pretty simple - will balance/utilization trends still affect the score negatively even if the current balance/utilization is much lower than usual?

 

For example, see this scenario:

  • March shows 25% utilization
  • April shows 35% utilization
  • May shows 50% utilization
  • June shows 85% utilization

Because the trend is that the user is accumulating more debt, instead of paying it down, I would imagine that the scores would suffer from this trend data. That part makes sense.

 

But let's say in July, the utilization is 1%. Would the trend data from the prior months still be hurting the credit scores at that point, or would the new low utilization sort of "reset" the trend and substantially boost the scores?

 

I'm worried that even if I were to pay off my debt completely, just the fact that I had a few prior months where my balances were higher might take a LONG time to undo that damage. This is what I always liked about the "snapshot" data of prior FICO versions, the fact that it was easy to boost your scores just by paying down the debt before the next statement closing dates, after which it was like I never had the debt in the first place. I'm not sure if I'm a fan of that information continually hurting my scores for several years, but I'm hoping it's only pulling scores down if the current month's trend is worse than the prior months trends, and that it can be quickly rectified by simply paying down the debt.

    Total Loan Balance: $28k / $70k

    Total SL: $41.2k
Goal cards:



United 1K - 675,000 lifetime flight miles    |    Chase 6/24
Message 35 of 112
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Regular Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

Thank you so much for answering all the questions!

 

My question is, when does a young file cross over to an aged file?

Message 36 of 112
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Moderator

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

A quick reminder, this thread is for questions only. 

If you feel like discussing anything  mentioned here, feel free to visit UFS and start a conversation there. 

 

Thank you. 

Message 37 of 112
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Community Leader
Super Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

Hello, and thank you! What a treat for us allSmiley Happy

ok...here we go.

#1- Years ago, there was "talk" of a super sweet ratio point, for ultimate FICO scoring, and that was 1:1, 2:2, 3:3 etc, etc, etc.......basically, the amount of open revolving cards and open reporting installment loans were exactly the same. Any truth to that?

#2- What is the exact number of inquiries that FICO STOPS counting them into your current score? 12? 20? 80? skies the limit?

#3- If inquires quit "counting" into your score after1 year, and FICO doesn't "see" them anymore, then why do they need to stay on your reports for 2 years?

#4- Why am I penalized for not having a Mortgage?




My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 38 of 112
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Regular Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

When I pay off a personal loan, thus achieving an evident goal, illustrating that I am a responsible borrower who completes my obligations AND reducing my credit burden in the process, my score drops based on the closing of an account.    How does this make sense?   

 

Thank you for this opportunity.   

 

Rebuilding is like smoking a brisket: it takes a lot of love, the right spice, and a ton of patience. You don't rush a brisket-- it goes low & slow. Sometimes, you need a crutch through the stall. In the end, the process matters.
2020 Goals:
1) NO CLDs!! *(Yeah, Maybe I'm gun shy, but I feel that's a risk right about now.)
2) Garden at least until 1/2021 if not longer**
3) Pay down one pesky card to 30% (This will be tricky.)
4) Pay down ALL cards to 20%
5) Ultimately, refi the house at non-usury terms. :-)

** UNLESS I get SP assurance that I can refi a particularly onerous personal loan at a low rate.-- DONE 6/19/20!
Message 39 of 112
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Regular Contributor

Re: We’re Tom Quinn & Tommy Lee - FICO Score Experts! Ask us anything.

We often hear the words.... but this effect (of your prior indiscretion) will decrease over time....  

When it comes to 30 lates, 60 lates, etc, can you speak to any gradual increase in terms of points?  Most users report the change and get a jump only after a full 7 years, despite the "effect" language.    

Rebuilding is like smoking a brisket: it takes a lot of love, the right spice, and a ton of patience. You don't rush a brisket-- it goes low & slow. Sometimes, you need a crutch through the stall. In the end, the process matters.
2020 Goals:
1) NO CLDs!! *(Yeah, Maybe I'm gun shy, but I feel that's a risk right about now.)
2) Garden at least until 1/2021 if not longer**
3) Pay down one pesky card to 30% (This will be tricky.)
4) Pay down ALL cards to 20%
5) Ultimately, refi the house at non-usury terms. :-)

** UNLESS I get SP assurance that I can refi a particularly onerous personal loan at a low rate.-- DONE 6/19/20!
Message 40 of 112
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