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question about high credit lines excluded from FICO8 scoring

tacpoly
Established Contributor

question about high credit lines excluded from FICO8 scoring

Once in a while I see a comment about credit limits above $35,000 is excluded from FICO scoring.  Could someone explain the working hypothesis on this?  Do balances on cards with high credit lines not count? 

 

I have one authorized user card with a lower limit <$35,000 and one charge card.  My other 3 credit cards have limits well over $35,000.  My FICO8 scores are 850 for all 3 CRAs.  My scores fell when 0 cards reported with balance.  They also fall when >1 card report a balance.  Some CRAs seem to ding me when my AU account has a high individual utilization, but I have no control over that account so can't really pin it down.  In case it's relevant, I have a line of credit with no balance, an installment account, and I also have several closed accounts with no balances on my report -- several of those with >35K limits.

Message 1 of 79
78 REPLIES 78
Dumbee
Established Contributor

Re: question about high credit lines excluded from FICO8 scoring

The gist of it would be the dollar amounts and % used on huge tradelines won't contribute to your utilization factor of scoring as regular smaller revolving lines of credit usually would

 

Though it seems dependent on which FICO version and the limit amount. 

 

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/50k-limits-not-part-of-utilization/td-p/... 

Smiley Embarassed
Message 2 of 79
BrutalBodyShots
Super Contributor

Re: question about high credit lines excluded from FICO8 scoring


@tacpoly wrote:

Once in a while I see a comment about credit limits above $35,000 is excluded from FICO scoring.


I'm not sure anyone knows the exact numbers, but I think the $35k thing is for some of the older models.  The newer ones (say Fico8+) I have heard the cutoff limit estimated to be north of $60k.  If I use a card with a $59,900 limit for example as my AZEO card, it "works" just fine on Fico 8.  I do not have easy access to older model scores though, so I haven't seen what impact that event has on those scores.

Message 3 of 79
SouthJamaica
Super Contributor

Re: question about high credit lines excluded from FICO8 scoring


@tacpoly wrote:

Once in a while I see a comment about credit limits above $35,000 is excluded from FICO scoring.  Could someone explain the working hypothesis on this?  Do balances on cards with high credit lines not count? 

 

I have one authorized user card with a lower limit <$35,000 and one charge card.  My other 3 credit cards have limits well over $35,000.  My FICO8 scores are 850 for all 3 CRAs.  My scores fell when 0 cards reported with balance.  They also fall when >1 card report a balance.  Some CRAs seem to ding me when my AU account has a high individual utilization, but I have no control over that account so can't really pin it down.  In case it's relevant, I have a line of credit with no balance, an installment account, and I also have several closed accounts with no balances on my report -- several of those with >35K limits.


There is a theory that some of the older scoring models do not count cards with > 35k credit limits for utilization purposes.

 

I do not know if the theory holds water.

 

I have never seen any difference between the way my > 35k accounts are treated and my < 35k accounts are treated.

Message 4 of 79
tacpoly
Established Contributor

Re: question about high credit lines excluded from FICO8 scoring


@BrutalBodyShots wrote:

@tacpoly wrote:

Once in a while I see a comment about credit limits above $35,000 is excluded from FICO scoring.


I'm not sure anyone knows the exact numbers, but I think the $35k thing is for some of the older models.  The newer ones (say Fico8+) I have heard the cutoff limit estimated to be north of $60k.  If I use a card with a $59,900 limit for example as my AZEO card, it "works" just fine on Fico 8.  I do not have easy access to older model scores though, so I haven't seen what impact that event has on those scores.


Of non-AU cards one is 45k. The other 2 are 75k and higher. I'll have to look more carefully but they all seem to be "visible" on FICO8 with regards to cards with balances.

Message 5 of 79
BrutalBodyShots
Super Contributor

Re: question about high credit lines excluded from FICO8 scoring


@tacpoly wrote:


Of non-AU cards one is 45k. The other 2 are 75k and higher. I'll have to look more carefully but they all seem to be "visible" on FICO8 with regards to cards with balances.


When you say one and other two, are you referring to bureaus?  I ask because as I stated earlier I did not see an AZ penalty when doing AZEO on a $59,900 card on any 3B Fico 8 score.  But, that's only Fico 8.  I have no idea if my other scores were adversely impacted at all.

Message 6 of 79
Birdman7
Super Contributor

Re: question about high credit lines excluded from FICO8 scoring

@tacpoly EX2 excludes revolvers with a credit limits over somewhere between 26 and $29,000 and higher. TU4 and EQ5 exclude revolvers with credit limits over $35,000. My understanding is the exclusion is from utilization and that it's just on the mortgage models.

 

I don't know of any being excluded on version eight or higher.

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 7 of 79
tacpoly
Established Contributor

Re: question about high credit lines excluded from FICO8 scoring


@Birdman7 wrote:

@tacpoly EX2 excludes revolvers with a credit limits over somewhere between 26 and $29,000 and higher. TU4 and EQ5 exclude revolvers with credit limits over $35,000. My understanding is the exclusion is from utilization and that it's just on the mortgage models.

 

I don't know of any being excluded on version eight or higher.


@Birdman7  interesting. Does this mean that when my mortgage scores are calculated, it doesn't see any of my cards?

 

@BrutalBodyShots  I meant CC'es. 

Message 8 of 79
Birdman7
Super Contributor

Re: question about high credit lines excluded from FICO8 scoring


@tacpoly wrote:

@Birdman7 wrote:

@tacpoly EX2 excludes revolvers with a credit limits over somewhere between 26 and $29,000 and higher. TU4 and EQ5 exclude revolvers with credit limits over $35,000. My understanding is the exclusion is from utilization and that it's just on the mortgage models.

 

I don't know of any being excluded on version eight or higher.


@Birdman7  interesting. Does this mean that when my mortgage scores are calculated, it doesn't see any of my cards?

 

@BrutalBodyShots  I meant CC'es. 


@tacpoly theoretically the only potential utilization TU4 & EQ5 should still see is on your authorized user card. utilization on the other cards should be hidden.

 

Is the credit limit low enough for EX2 to see it as well?

 

remember the mortgage scores don't differentiate between primary and authorized user accounts, so it sees the authorized user account as if it were yours and should be your AZEO card, so you don't get an AZ loss. That AU card is perfect!

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 9 of 79
tacpoly
Established Contributor

Re: question about high credit lines excluded from FICO8 scoring


@Birdman7 wrote:

@tacpoly wrote:

@Birdman7 wrote:

@tacpoly EX2 excludes revolvers with a credit limits over somewhere between 26 and $29,000 and higher. TU4 and EQ5 exclude revolvers with credit limits over $35,000. My understanding is the exclusion is from utilization and that it's just on the mortgage models.

 

I don't know of any being excluded on version eight or higher.


@Birdman7  interesting. Does this mean that when my mortgage scores are calculated, it doesn't see any of my cards?

 

@BrutalBodyShots  I meant CC'es. 


@tacpoly theoretically the only potential utilization TU4 & EQ5 should still see is on your authorized user card. utilization on the other cards should be hidden.

 

Is the credit limit low enough for EX2 to see it as well?

 

remember the mortgage scores don't differentiate between primary and authorized user accounts, so it sees the authorized user account as if it were yours and should be your AZEO card, so you don't get an AZ loss. That AU card is perfect!


@Birdman7  This is probably why my mortgage scores are lower (817, 812, 840).  The AU card has a 28K limit.  DH never asks for CLIs, but I better tell him to decline auto increases as well Smiley LOL  

Message 10 of 79
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