How does FICO08 Affect authorized user accounts?
FICO version 08 is the newest release of the consumer credit rating software and claims as one of the new features to place less significance on authorized user accounts for increasing credit scores.
It is publicized that the algorithms now recognize authorized user accounts used for credit repair and are minimizing their impacts by reducing the score increases and capping multiple authorized users lifts with those with several in their file.
The new model of FICO scoring, however, places significantly more emphasis on card balances vs. credit limits. Many people who used to recognize what the experts considered a healthy usage rate of below 30% was not viewed differently than staying below 20% usage on an account.
Card holders with 10% usage compared to limits are realizing even higher boosts from the new latest scoring standard.
Those who keep a small balance and reflect a high limit are rewarded the most with the FICO 8 system.
The greater recognition for maintaining lower percentages of credit rule applied to all tradeline accounts and authorized user accounts which have higher credit limits and lower balances receive the same benefit as primary card holders.
Key factors to understand are:
* Fico 8 restricts the amount of weight for credit increases with files having multiple authorized user tradelines.
* Fico 8 rewards those with very low percentage of usage on the limits on credit cards.
* Fico 8 is the newest release of their version of the consumer credit scoring system.
* Fico 8 is the latest model which will most likely be replaced by FICO 9.