I think whats happening is the credit market is getting too loose.
Due to the credit crisis in the past a some companies were probably late to jump on the band wagon.. and with banks making so much,
even more companies are starting to jump on the train and just give out credit.
I think the sole reason for the change is to kind of pump the breaks and prepare the country for the inevitable credit pullback.. Depending on events later this year, there could be a significant pullback in the overall markets in general.. I think the banks are just getting ready.
Last Inquiry 12/23/2022 Ally Bank Mortgage
Thread was moved from RYC to UFS for better exposure on the question.
From what I read, using AZEO will no longer be really effective. One of the articles I read said that utilization will now have a memory and will list prior levels and lenders will be able to see what you have generally carried month to month to prevent temporarly raising scores to stretching people to thin on credit. So heavy users like Cap 1 will get you punished and personal loans are to be looked at less favorably. Basically, you get punished for using credit. Only thing not mentioned was mortgages and vehicle loans. I wonder if they are pushing that since more people tend to use cards. I have there will be pushback on the new model being rolled out.
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@Anonymous wrote:
It’s also noteworthy that AZEO relies on the number of accounts metric which has nothing to do with the utilization metric. They are separate scoring factors and the only thing they have in common is they both influence the same slice of the fico pie, although differently on different scorecards and algorithms.
But who knows what’s gonna happen with version 10.
This is the clutch point (and only rational one of the entire conversation in the entire media frenzy over the past few days).
We do not know specifics, at all. I'm guilty of some wishful thinking / conjecture in the main thread we have running on FICO 10 but the fact is neither I nor anyone else that's not covered by a F'n hardcore NDA inside FICO knows what's up... and it's a really small number of people inside the moat too.
Really if we were looking at trended data we might be able redo ALL of the revolving utilization metrics... but it's about patterns, and as such there may still be patterns in the data which provide better resolution than even trended data (TD) will.
We just don't know, the only concrete thing we know is that FICO 10T (or whatever it's named eventually) will look at TD, and it's been released that installment loans will be scored differently than the current algorithms, but everything else is conjecture.
