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FICO Credit Score Being Revised by Fair Isaac
Posted on Dec 19, 2007 by Tom Fragala
Fair Issac (FIC), the company behind the FICO credit score used by 90% of the top 100 banks, is revising the models behind their credit score. This is something they do from time to time. The new score's inside name is FICO 08. According to the Wall Street Journal:
The latest version of the FICO score will largely look and feel the same to consumers and lenders. Scores will still range from 300 to 850 -- the higher the better -- and the model will continue to look at the same factors, including consumers' level of credit indebtedness and payment histories, length of credit histories, number of recent credit openings and inquiries, and the type of credit used, to determine scores.
But the new model will more finely slice and dice the information in consumers' credit files to do a better job of separating the "good risks" from the "bad risks" ...
See Default Lines: The New Math Of Credit Scores - WSJ.com.
Comments
Credit Card Guy on Dec 21, 2007
In reality, I think the changes will be minimal for most consumers. Though I do think those with the random derog account will benefit from the new model. I just feel the bad guys will figure out the new system and corrupt it, just as they did with past scoring models. I also think it's a lot of marketing fluff to combat the VantageScore, the Fico score competitor which is quickly gaining in popularity.
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