FICO Score calculations and Algorithms

[sjt]

Hi All,

I am wondering if the way FICO calculates scores based on the average nationwide FICO scores and if there other factors in calculating scores that go beyond the individual profile.

[user5387]

The FICO scoring model is derived from longitudinal studies of large numbers of actual anonymized reports, if I recall correctly.

[sjt]

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@user5387 wrote:

The FICO scoring model is derived from longitudinal studies of large numbers of actual anonymized reports, if I recall correctly.

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Thanks for the reply!

So depending on the outcome of these various studies, calculations can change right?

[user5387]

The scoring model is based on real behavior, rather than simply being pulled out of thin air.

The idea is to quantify certain behaviors (like high utilization) in terms of how well they predict future delinquency.  Try doing a Google search using the words "fico delinquency rates".

Here's an article that discusses some of these points:

http://www.creditinfocenter.com/creditreports/scoring/FICOchanges.shtml