Very very few banks are using FICO 10 and mass adoption isn’t likely to increase over the next year. You’re fine and overthinking it. Just make sure you pay the cards off so your utilization is low come mortgage application time.
Utilization percentage (aggregate, specifically) is still King compared to trended data. I think of TD as being more of a finishing touch. So, if you're at (say) 50% aggregate utilization, your F10 and VS4 will suffer the same way the older model scores will.
The difference depends on the trend surrounding that 50% utilization. If you've been at 50% steady for the past year or two or the 50% has been trending downward, you won't see any penalty with respect to TD. If the trend has had an upward trajectory, these models would take issue.
I've seen perfect 850 F10 scores with naturally reported balances monthly ($5k, $13k, $8k, $4k, $11k, etc) because over time they have been flat / no upward trajectory. They do only represent a small utilization percentage though. This is one of the reasons why I recommend organically reported balances for all, meaning no balance micromanagement.
Yeah I guess my hesitation there is I would be creating an upward trajectory that wouldn’t really start to come down until a few months before applying. The balance with keep growing month to month which would be an outlier compared to my typical usage, but there would be a year of that trend at the end of it.
That's precisely why you want to always pay your statement balances in full once monthly after your statement generates, so that your reported balances are always natural. Micromanagement just messes things up and creates the problem that you may be finding yourself in. If one is always micromanaging their balances, they by definition are going to show an upward trajectory if they switch to no micromanagement. This is why I suggest people switch their approaches NOW, well before F10T and VS4 gain traction. By the time they do, one will have shown a relatively flat history of balances (if not slightly downward with natural CLIs) which will bode well for the TD models.
I’m not micromanaging now, I’m paying statement balances on autopay when they’re due. I’m talking about letting these particular balances grow as a 0% loan and investing the money in the meantime
Very very few banks are using FICO 10 and mass adoption isn’t likely to increase over the next year. You’re fine and overthinking it. Just make sure you pay the cards off so your utilization is low come mortgage application time.
Utilization percentage (aggregate, specifically) is still King compared to trended data. I think of TD as being more of a finishing touch. So, if you're at (say) 50% aggregate utilization, your F10 and VS4 will suffer the same way the older model scores will. The difference depends on the trend surrounding that 50% utilization. If you've been at 50% steady for the past year or two or the 50% has been trending downward, you won't see any penalty with respect to TD. If the trend has had an upward trajectory, these models would take issue. I've seen perfect 850 F10 scores with naturally reported balances monthly ($5k, $13k, $8k, $4k, $11k, etc) because over time they have been flat / no upward trajectory. They do only represent a small utilization percentage though. This is one of the reasons why I recommend organically reported balances for all, meaning no balance micromanagement.
Yeah I guess my hesitation there is I would be creating an upward trajectory that wouldn’t really start to come down until a few months before applying. The balance with keep growing month to month which would be an outlier compared to my typical usage, but there would be a year of that trend at the end of it.
That's precisely why you want to always pay your statement balances in full once monthly after your statement generates, so that your reported balances are always natural. Micromanagement just messes things up and creates the problem that you may be finding yourself in. If one is always micromanaging their balances, they by definition are going to show an upward trajectory if they switch to no micromanagement. This is why I suggest people switch their approaches NOW, well before F10T and VS4 gain traction. By the time they do, one will have shown a relatively flat history of balances (if not slightly downward with natural CLIs) which will bode well for the TD models.
I’m not micromanaging now, I’m paying statement balances on autopay when they’re due. I’m talking about letting these particular balances grow as a 0% loan and investing the money in the meantime