FICO 8 VS FICO 9

[CostantinoA]

I just signed up with MyFICO to view my credit scores.  Most of my negative on my reports is because of medical bills.  I was reading that I would most likely see an increase in my score. Compared to my FICO 8, my score dropped 60-75 people.  What gives..  Does anyone know what they look at that is so different?

[SouthJamaica]

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@CostantinoA wrote:

I just signed up with MyFICO to view my credit scores.  Most of my negative on my reports is because of medical bills.  I was reading that I would most likely see an increase in my score. Compared to my FICO 8, my score dropped 60-75 people.  What gives..  Does anyone know what they look at that is so different?

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Between what FICO says, what Thomas_Thumb posits, & my experience, these seem to be differences between FICO 9 & FICO 8:
-paid collections not counted (FICO)
-medical collections given less weight (FICO)
-rental history counted (FICO)
-recent inquiries/young age of accts given less weight (T_T)
-smaller no. of accts reporting balances given more weight (T_T)
-premium for open as opposed to closed installment loans reduced (T_T)

[Thomas_Thumb]

I believe unpaid collections are given more weight in Fico 09.

Creditors want to get paid and have leveraged their influence with Fico to add carrot (paid) and stick (unpaid) strategy to Fico 09 - IMO

[CreditDunce]

FICO 9 may be weighing your medical baddies less, but they are weighing your other baddies more.  Plus it weighs multiple baddies harsher than FICO 8.  At least from my reading between the lines from what FICO has published.  We will really need more data points before we start understanding how FICO 9 behaves.

PS.  T_T ideas of unpaid baddies being weighed more than previously also rings true.

[CostantinoA]

Almost all my bads are medical. That is why I am confused.

[Revelate]

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@CostantinoA wrote:

Almost all my bads are medical. That is why I am confused.

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Inquiries and / or the BK potentially would be my SWAGs.  Hard to say, we don't have much data on FICO 9.

My EQ FICO 9 is absurdly high compared to my EX FICO 9 and the reports are identical except for inquiry distribution (similar in count, but I had one a week old on EX when I pulled the 3B from an Amex offer I couldn't refuse haha); also my EQ FICO 9 is likewise absurdly high compared to my EQ FICO 8, presumably from it's handling my paid tax lien differently but it's only one datapoint and TT's data doesn't mesh well with mine (dirty file vs. his gold-plated one).

In my case I know I'm applying for a HELOC as soon as I get a few inquiries to fall off and my Beacon 5.0 will bounce back above 700, and will pony up the 1B report after that inquiry lands on EQ which might help shed some light on the inquiry side of the house.

[CreditDunce]

Even if the public record was caused by medical bills, it isn't considered a medical baddy.  Ditto for the BK 7.  Either the public record or the BK 7 count as a major baddy.   The first baddy (especially a major baddy) is the one that hurts the most.  FICO 9 may be penalizing you more for the two majors than FICO 8 did.  The medical baddies may not hurt as much in isolation, but be very painful under FICO 9 when combined with other baddies.  Also, as the Rev mentioned, you have 136 total INQs.  With FICO 08, they don't do much more damage after about 10 per CRA.  FICO 9 may be more sensitive to the total number or how recent the INQs are.   At least for reports in one of the derog buckets.

I am sorry, we are just going to need more time before we understand how FICO 9 works.  Data points like yours help, but we do not have enough.

[CostantinoA]

A bunch of my inquires will be gone by the end of this year (older than 2 years).  We will see.  I really need to be 680-700 range by October!

[Revelate]

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@CostantinoA wrote:

A bunch of my inquires will be gone by the end of this year (older than 2 years).  We will see.  I really need to be 680-700 range by October!

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Inquiries only count for a year anyway, look for ones passing the 12 month mark in terms of changes.

What do you need the 680 for?  FICO 9 really isn't used anywhere yet to our knowledge so it's somewhat irrelevant.

[CostantinoA]

By the end of the year, almost all of them will be over a year and most will be over two years.  I just want it for personal goals.  I am considering leasing a Tahoe or Escalade.  The dealer told me today that I am tier 2 right now but want to be in teri 1 credit rankings.