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PenFed and FICO 9

Established Contributor

PenFed and FICO 9

About a week ago, I got an email telling me that my Thrifty Credit Account was being closed because I no longer meet the criteria. Nothing had changed on my report in a long while accept utilization but they quoted delinquencies as the issues. I fought with them about it for a week to realize that they are now scoring based on FICO 9 but using the same credit criteria as the old Equifax model they used to use. My FICO 8 is about 60 points higher than my FICO 9 due to utilization. What a waste. I've since paid off the measly $300 balance and closed all accounts. Good riddens, PenFed!

Starting 11/14 EQ 498 EX 514 TU 507 | Current 4/10 EQ 651 EX 697 TU 692 | Util 11% | Personal Credit - $97,540 | Business Credit - $71,100
19 REPLIES
Valued Contributor

Re: PenFed and FICO 9

Why didn’t you just call and speak to a LO? I’m sure that you could ave worked it out
NFCU $45k/PenFed $22.5k/Commerce $15K/53 $15K/Synovus $14K/BBT $8.5K/CapOne $12K/DCU $7.5K/BMO $7.5K/Chase $14.5k/Cabelas $5K/ and many many more!
Total CL $333700, plus car and RV lond
Message 2 of 20
Established Contributor

Re: PenFed and FICO 9

This is what the LO said. They switched to FICO 9 but use the same criteria as the old FICO 4 or whatever they used to use before the switch. 

Starting 11/14 EQ 498 EX 514 TU 507 | Current 4/10 EQ 651 EX 697 TU 692 | Util 11% | Personal Credit - $97,540 | Business Credit - $71,100
Message 3 of 20
Valued Contributor

Re: PenFed and FICO 9

Sorry you got hassled, but it's a good reminder that lenders are doing soft pull inquiries for account reviews, AND because of the increase in chargeoffs, they're tightening underwriting even on older accounts.

 

I didn't realize FICO9 penalizes utilization differently than FICO8 -- did you read that here?  Was under the impression that FICO4, FICO8 and FICO9 all used the same utilization breakpoints.

 

Also how high was your worst card's utilization and for how many months?

Message 4 of 20
Mega Contributor

Re: PenFed and FICO 9


lindsaydruart wrote:

About a week ago, I got an email telling me that my Thrifty Credit Account was being closed because I no longer meet the criteria. Nothing had changed on my report in a long while accept utilization but they quoted delinquencies as the issues. I fought with them about it for a week to realize that they are now scoring based on FICO 9 but using the same credit criteria as the old Equifax model they used to use. My FICO 8 is about 60 points higher than my FICO 9 due to utilization. What a waste. I've since paid off the measly $300 balance and closed all accounts. Good riddens, PenFed!


Not sure why you would expect differently.    Issuers switched to FICO 9 presumably because the believe it is a better risk measure than earlier FICOs.   If your score has dropped on the New Improved Even Better model, then it appears to them that you are more of a risk than they previously thought.   

 

The only reason for changing their criteria would be if experience showed them that FICO9 over or understated the risk compared to their previous system (but then they would probably revert to that model).

Message 5 of 20
Established Contributor

Re: PenFed and FICO 9

That's the issue. The risk is seemingly overstated. I still qualify based on my FICO 8 score but not my FICO 9. They changed to FICO 9 but kept the FICO 8 standard. For a lot of people FICO 9 is significantly lower than FICO 8.

Starting 11/14 EQ 498 EX 514 TU 507 | Current 4/10 EQ 651 EX 697 TU 692 | Util 11% | Personal Credit - $97,540 | Business Credit - $71,100
Message 6 of 20
Established Contributor

Re: PenFed and FICO 9


ABCD2199 wrote:

Sorry you got hassled, but it's a good reminder that lenders are doing soft pull inquiries for account reviews, AND because of the increase in chargeoffs, they're tightening underwriting even on older accounts.

 

I didn't realize FICO9 penalizes utilization differently than FICO8 -- did you read that here?  Was under the impression that FICO4, FICO8 and FICO9 all used the same utilization breakpoints.

 

Also how high was your worst card's utilization and for how many months?


If they had dinged me on utilization, I would have been completely fine with that. I'm at 61% right now but the reason they gave was delinqencies. I haven't had any new delinquencies in years BEFORE I even opened the account. I questioned that and that's when they came up with my score didn't fit the criteria. A 60 pt difference between scoring models is a pretty big deal.

Starting 11/14 EQ 498 EX 514 TU 507 | Current 4/10 EQ 651 EX 697 TU 692 | Util 11% | Personal Credit - $97,540 | Business Credit - $71,100
Message 7 of 20
Senior Contributor

Re: PenFed and FICO 9

I do think that Fico9 scores utilization worse than Fico8.

 

Just recently got my first access to a Fico 9 score, and it's 40 points lower than Fico 8 for me.


Gardening since 10 Jan 2018. Gardening until I hit 700 or 15 April. Whichever comes first. Smiley Tongue
Zero percent financing is where the devil lives...
10/01/17 Fico8 scores: EX 660, EQ 647, TU 663
01/01/18 Fico8 scores: EX 655, EQ 661, TU 650
Message 8 of 20
New Contributor

Re: PenFed and FICO 9

The reasons listed are just like when denied for credit. They just pick something, it doesn't really matter what.

 

The thing you should focus on is this is a warning that your profile needs attention. If your sig line is correct and you are at 61% utilization and you are carrying approx. $60,000 unsecured personal debt and that will scare pretty much any lender. I wouldn't consider PenFed a super conservative lender so I would be worried of AA by other lenders. 

 

Just take a breath and relax and do what you can to improve your profile. Good luck.

Message 9 of 20
Valued Contributor

Re: PenFed and FICO 9

Sorry about them closing your thrifty account.  I never use mine due to the high interest rate, but it is nice to have a revolver that doesn't need periodic activity.  Penfed used to use NextGen FICO scores.  NextGen is an ancient,  squirrely model.  Alliant and Penfed were the only two lenders I knew of that used the model.   It might not be so much your score going down as utilization.  Penfed doesn't have a reputation for liking people who constantly carry balances.

Message 10 of 20