MyFICO - TransUnion, utilization!

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Spunky
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MyFICO - TransUnion, utilization!

Postby Spunky » Mon Jan 13, 2014 1:32 pm

I just had a rather surprising experience. Just purchased a full copy of my TransUnion credit report and score, and found I had dropped nearly 20 points from earlier this year—a high credit utilization was to blame.

It appears as if my Amex accounts are classified as credit cards, and the statement balances are counting as utilization. Best I can tell since no limit is indicated, they are treating the balance as the limit in their calculations. This has put my utilization significantly higher than it should.

Anyone have any experience with this or insight to share?
MB Amex Platinum | Amex Premier Gold | Amex Everyday Preferred 25k | Citi Executive 22.5k | Barclay Arrival 12.5k | USAA Amex 10.5k | WF Platinum Visa 5k | Chase Visa | GECRB Visa

TU 787 EXP 790 EQ 767


MemberSince99
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Postby MemberSince99 » Mon Jan 13, 2014 2:03 pm

I would not be a bit surprised if you are correct.


The thing is, it's nothing to worry about as since as far as I know, no one uses the TU98 model that FICO sells anymore, or at least most lenders don't. In a way the score FICO sells isn't that much more relevant than FAKOs if you really think about it. I'm not sure why they don't update their model.

RhapX
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Postby RhapX » Mon Jan 13, 2014 7:32 pm

My Amex shows up on my CR's as an installment loan but doesn't effect my credit utilization %. It definitely shows as debt. Perhaps there is a new reporting model that weighs them differently than before? My experience is based off last months CR. Also worthy to note, my Amex is a charge card not a regular credit card.

takeshi
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Postby takeshi » Tue Jan 14, 2014 9:15 am

TU98 is an older scoring model. Newer FICO models do not factor charge cards into utilization.

MemberSince99 wrote:In a way the score FICO sells isn't that much more relevant than FAKOs if you really think about it.

+1 FAKO's are definitely irrelevant but even FICO scoring will vary depending on the specific FICO model used.

Spunky
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Postby Spunky » Wed Jan 15, 2014 10:15 am

I see.

That is perplexing. :mad:

I wonder how accurate it is to use their estimator and input a pay down of those account balances.
MB Amex Platinum | Amex Premier Gold | Amex Everyday Preferred 25k | Citi Executive 22.5k | Barclay Arrival 12.5k | USAA Amex 10.5k | WF Platinum Visa 5k | Chase Visa | GECRB Visa

TU 787 EXP 790 EQ 767

MemberSince99
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Postby MemberSince99 » Wed Jan 15, 2014 12:16 pm

It's always a guesstimate. It will always depend on your specifics and which model is used. You can make some general statements that will be true like paying down from 50% to 10% will raise your score all other things being equal but in terms of exact numbers forget about it.


I always get a chuckle when people ask "how many points will my score go up if I pay down my balance". Dude, I don't know, you might as well ask what are tonight's winning lottery numbers - your guess is as good as mine. In order to answer that we'd need WAY more information than we have and then it would depend on the model used. It's almost like asking "Will I be approved for an Amex". Hell if I know, if you want to find out just apply and let us know. Of course if you have a recent BK, we can say you are wasting an inquiry or we could say well it looks like you might but that's really as far as it goes. I never know when I apply if they will approve or decline it's just how that goes.

takeshi
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Postby takeshi » Thu Jan 16, 2014 10:04 am

Spunky wrote:I wonder how accurate it is to use their estimator and input a pay down of those account balances.

Again, depends the scoring models in question. I'm not aware of any estimator that spits out numbers for all of FICO's scoring models. Even if the estimator is 100% accurate it doesn't matter if it uses a scoring model that is different from what the creditor uses. Additionally, different creditors use different CRA's. If the creditor doesn't use TU then your TU FICO doesn't matter.

I'd suggest not fixating on scores and instead carefully reviewing your credit reports. Scoring is based on info on those reports. 20 points really isn't much of a change and it's impossible to tell if those 20 points really mean anything significant.



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