New fico score model

[Anonymous]

I keep hearing rumors that the new fico score model is supposed to be out last month but didn't see anything about it. I also notice that the fico add Fico XD but I thought the fico score supposed to add fico 9 too. Any update or rumors about the new scoring model?

[jamie123]

A new model is supposed to be coming out but as to when that will happen, I don't know.

Once it is released it will probably be several years before it is commonly used. I think the lenders test both the old and new model against each other to determine how the new model will affect their business before solely relying on the new model. You won't even know they are doing these tests. They will just one day start using the new model publicly.

[Anonymous]

Can you guys comment a little further on what models you are talking about? 

There's FICO 9.  My understanding is that: (a) it was released last year (b) few lenders are using it yet but (c) in theory lenders can use it and a few are.  Is all that correct?

Then there's FICO Score XD.  Is this the one that you guys have in mind?

http://www.fico.com/en/products/fico-score-xd#overview

It looks like it is a product for credit card companies -- perhaps the successor to FICO 8 Bankcard Enhanced.  I can't really tell -- is this a product that has not been released but will be soon?

Is there some other model (besides 9 and XD) that you guys are thinking of?  FICO 10?

[StartingOver10]

That FICO XD model looks like it is meant to be used in certain types of situations: expanding markets to unscorable consumers now.  

See brief into (from your link) "Bankcard issuers have a new opportunity to extend credit to millions of U.S. consumers who otherwise cannot be scored safely, either due to insufficient or stale data in traditional credit bureau files. FICO introduces FICO® Score XD—developed in partnership with LexisNexis® Risk Solutions and Equifax® — this new score leverages alternative data sources to give issuers a second opportunity to assess otherwise unscorable consumers. FICO® Score XD is designed with precision and compliance in mind to enable issuers to safely extend credit to a largely untapped market using an accessible and familiar FICO® Score."

FICO 9 appears to concentrate on the repayment ability of the consumer (prediction of repayment I should say). See link for details

http://www.fico.com/en/node/8140?file=7786

[Anonymous]

Yup... I read that.  But the thing that I thought was interesting is that expanding the pool of scorable customers is something that all kinds of lenders might want: auto, mortgage, credit card, etc.  (As a matter of fact there's been a huge push for that in mortgage lending especially.) But for some reason this model (XD) is only designed for bankcard issuers. 

Regardless, the OP (Ace17) and Jamie both mentioned that a new FICO model was going to be released.  But it was unclear what FICO model the OP and Jamie were talking about.  XD, 9, 10, something else?  I was curious to see whether they could be more specific.

[Thomas_Thumb]

All I have to say is: It's time to get established (#500). Damn, I thought 500 was the magic number - wrong again

Ok - I guess patience is key. A 5 minute delay was all it took. I'll stay right here ... until tomorrow.

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[Anonymous]

I can't remember.  See what happens when you hit 501. 

PS.  If it weren't for the existence of the EDIT option, I would have guessed you made that post with the certain precognition that it would not be the magic number.  In which case I would be hunting you down for a visit to the race track.

[Anonymous]

OK, TT.  I think you win the prize for the greatest number of significant edits to a post in the smallest length of time.

[jamie123]

I was talking about FICO 9 and I think that it has already been released but has not been put to use by any lenders that I know of yet.

Here is an article that explains this in further detail: http://www.magnifymoney.com/blog/pay-down-my-debt/introducing-fico-9-what-this-means-for-you/

[Anonymous]

Hi Jamie.  Yep, FICO 9 (standard) was released a year ago.  The industry-specific flavors (Auto, Bankcard) were released about six months ago:

http://www.fico.com/en/newsroom/industry-versions-of-fico-score-9-now-available-to-lenders-from-all-...

I'd be surprised if no one is using it, if that means not a single license has been purchased for FICO 9.  I am guessing lots of FICO 9 scores are being run, if only as part of big lenders reviewing it internally against their other options.  And then a few smaller lenders or providers of credit assessment might well be using it -- very few no doubt but there well might be some (given the many thousands of lenders and creditors in the world).

Our OP was talking about a new FICO model that was not yet released but might be soon.  Hopefully he'll tell us more which one he was thinking of.