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What effect do large statement balances have on 10T?

Rowdy_Randolf
New Member

What effect do large statement balances have on 10T?

I'm new here, and have a few questions I haven't found an answer for about Fico 10T. If someone could point me in the right direction, I'd appreciate it.

 

If I post large revolving statement balances and pay them off fully each month, will that have an impact on 10T? 

If I want to maximize 10T, do I need to worry about utilization if I'm paying my statement balances in full? Or would I want to keep utilization low for maximum scores? It's not clear to me if preventing balances from creeping up over time is enough to maximize scores or if I need to keep them low to begin with.

I searched this forum (and others) for these answers, and I've monitored my scores via experian (not 10T of course) for several years, but I haven't found the answers I'm looking for. Thank you.

 

Message 1 of 8
7 REPLIES 7
markbeiser
Frequent Contributor

Re: What effect do large statement balances have on 10T?

From the little info I've seen on 10T, it looks at the trend over a 24 month period, so it is best to keep your utilization consistently low.
Tightening up and paying off CC balances won't result in the kind of imediate score bump it does with the current scoring models.



Gardening until January 2024, or until all 3 FICO8 scores are >800, whichever comes LAST.
Gardening since January 10, 2023

Message 2 of 8
FireMedic1
Community Leader
Super Contributor

Re: What effect do large statement balances have on 10T?

welcome @Rowdy_Randolf 

You could follow this thread close to what your asking for:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Closing-Opening-Accounts-Impact-on-FICO1... 

FICO 9 isnt the go to single version yet. 10/10T is in its infancy. No talk of it that is has been used yet on approvals or denials yet.



Homeowner Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my rebuild after BK from learning here. Started 540's. FICO 9 801 as of 05/03/2023. I stayed around to pay it forward for those who helped me back then.

Message 3 of 8
SouthJamaica
Mega Contributor

Re: What effect do large statement balances have on 10T?


@Rowdy_Randolf wrote:

I'm new here, and have a few questions I haven't found an answer for about Fico 10T. If someone could point me in the right direction, I'd appreciate it.

 

If I post large revolving statement balances and pay them off fully each month, will that have an impact on 10T? 

If I want to maximize 10T, do I need to worry about utilization if I'm paying my statement balances in full? Or would I want to keep utilization low for maximum scores? It's not clear to me if preventing balances from creeping up over time is enough to maximize scores or if I need to keep them low to begin with.

I searched this forum (and others) for these answers, and I've monitored my scores via experian (not 10T of course) for several years, but I haven't found the answers I'm looking for. Thank you.

 


No one really knows the answers to your questions, but I am certain that if you report large balances it will hurt your FICO 10 and FICO 10T scores, just as you would be hurting all your other FICO scores.


Total revolving limits 748700 (630200 reporting) FICO 8: EQ 705 TU 717 EX 687

Message 4 of 8
Rowdy_Randolf
New Member

Re: What effect do large statement balances have on 10T?

Thank you for the reply - my first here at MyFico Smiley Happy

I figure you're right, but I was kind of hoping I could maximize 10T without micromanaging my accounts, as long as I don't trend upwards. But from what I'm gathering, that doesn't appear to be the case. 
Thank you much and have a good one!

Message 5 of 8
SouthJamaica
Mega Contributor

Re: What effect do large statement balances have on 10T?


@Rowdy_Randolf wrote:

Thank you for the reply - my first here at MyFico Smiley Happy

I figure you're right, but I was kind of hoping I could maximize 10T without micromanaging my accounts, as long as I don't trend upwards. But from what I'm gathering, that doesn't appear to be the case. 
Thank you much and have a good one!


You're welcome and welcome to the forum.


Total revolving limits 748700 (630200 reporting) FICO 8: EQ 705 TU 717 EX 687

Message 6 of 8
Rowdy_Randolf
New Member

Re: What effect do large statement balances have on 10T?

Hiya @FireMedic1 , thanks for the welcome! 
That was an informative read you pointed me to - now I know there's an AU AZ penalty for 10T. Something I'm rather careless about and will make more of an effort to prevent. Also, I'd heard 10T was sensitive to new accounts, and I'm certainly seeing that in my own 10T scores. Not pretty. 
Thank you much - I learned a lot from your post. Have a great day!

Message 7 of 8
Rowdy_Randolf
New Member

Re: What effect do large statement balances have on 10T?

Thank you @SouthJamaica , very kind of you to reply. I'm thinking you're right, but I just have this urge to know how far the needle moves. I'm not in the market for a mortgage anytime soon - my home is paid for and I already own the home I plan to retire to outright (assuming a hurricane doesn't destroy it first Smiley Wink but a fair number of people ask me for advice and I don't want to steer them wrong or give them faulty numbers. Your advice seems like the safest bet for sure. 

Message 8 of 8
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