Established Member
Posts: 21
Registered: ‎07-01-2007

A penny for your thoughts: clds and future FICO scoring

Hi everyone -


Just curious to get your opinion:


Since it's apparently becoming the "in thing" now for a growing number of credit card companies to give clds (even to their most loyal cardholders), do you feel this could possibly bring about another change to FICO scoring down the line since util is part of the equation? 



Super Contributor
Posts: 8,164
Registered: ‎03-25-2007

Re: A penny for your thoughts: clds and future FICO scoring

Given the problems of FOCO '08, I doubt it!!

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Regular Contributor
Posts: 221
Registered: ‎09-18-2007

Re: A penny for your thoughts: clds and future FICO scoring

Considering how long it took them to adopt the current models, let alone Fico2008, sure we'll see a change.  I'm betting on around 2014.
Oct 2008 FICO: EQ:706 ,EX:708, TU:720
Sept 2007 FICO: EQ:673, EX:683, TU:676
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Valued Contributor
Posts: 1,424
Registered: ‎07-24-2007

Re: A penny for your thoughts: clds and future FICO scoring

No - the repercussions of a cld will be a lowering of the average FICO score. However, IMO the credit crunch will not be as bad, nor last as long,  as everyone is predicting.
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Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007

Re: A penny for your thoughts: clds and future FICO scoring

[ Edited ]

My opinion is... Once things blow over the people left standing with out negs on their credit reports will be allowed CLI's again I think. It's a time where lenders don't know who is going to default from job loss or slow business... If people loose jobs they stop shopping and the business owner with perfect credit can't pay bills anymore. Lenders are waiting to see what happens and how this will affect all of us. Like preparing for a big storm. After the storm is over all goes back to normal. It is mostly fear controling things now to play it safe. I think it will blow over and return to normal. But they won't be giving out loans to people they know can't pay for them. Banks don't care about CLs to help our UTL and scoring. They just don't want the risk anymore.


As far as giving out pennies, after the $70bil bailout you might need to offer nickles due to inflation. :smileysad: bad joke. Honestly my outlook is pretty good. Just frustrating right now becuase we have to wait it out. I expect the greedy CEOs will realize they have to extend credit to make money.


Just work on the same stuff you have been, trying to raise scores and when things settle down it will be normal for you. However people with multiple collections and negs will definitely have a harder time. I bet we are going to be graded right now for furutre credit risk later. Those that have been able to keep things going well right now will have proved we are better credit risks in hard times. So keep going and doing and don't worry so much right now, any damage in CLDs can be reversed soon enough after this fear settles.


I would imagine lates on mortgages might be scored as more important in next ver of FICO. 

Message Edited by ilovepizza on 10-20-2008 07:29 PM
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Established Member
Posts: 21
Registered: ‎07-01-2007

Re: A penny for your thoughts: clds and future FICO scoring

Thank you, everyone who's posted so far.  Appreciate your sharing. :smileyhappy:

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