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Regular Contributor
SoulSmilen
Posts: 165
Registered: ‎03-13-2007
0

Re: SubPrimers...Very Good News!



fused111 wrote:


dog wrote:
orchard is my oldest card, i am not giving that one up for any damned thing
 


dog it will sure be nice when you receive your blue card, so you can whip it out and pay one of your power lunch tabs with your friends and cohorts w/o maxing it out! Steaks and cocktails for four with a $300 CL, not exactly priceless.:smileytongue:


Message Edited by fused111 on 07-10-2007 11:57 AM

LOLOLLLLL
Super Contributor
MidnightVoice
Posts: 8,157
Registered: ‎03-25-2007
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Re: SubPrimers...Very Good News!



fused111 wrote:
For the last several weeks it has been rumored consumers with subprime CCs reporting on their CRs will see their FICO scores plummet once FICO'S new and improved scoring model debuts this September. JUST IN, THIS IS NOT GOING TO HAPPEN! So what will the new FICO scoring model do? Simply put, a better job of predicting subprime and prime risk than earlier versions of FICO scoring models. That's it!
 
 


Do you have a link to this?
 
And I wonder if it is better at predicting subprime and prime risk due to the fact that it looks at if the CCs are subprime or prime?   :smileyvery-happy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007
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Re: SubPrimers...Very Good News!

 
The company plans to begin delivering the new FICO® score innovations starting in September.
...

Fair Isaac's development tests indicate that the new Classic FICO® score research model increases predictive strength by 5-15 percent, with the largest increases coming in three important consumer segments:

  • Originations and new accounts
  • Borrowers who pose higher risk, often referred to as subprime borrowers
  • Borrowers with thin or young credit bureau files

I ain't buying the good news. I say the AU issue alone is going to drive down the FICO scores of millions, some seeing significant decreases, and many being husbands and wives who are already responsible for one another's debts.

I also predict the end result will be more subprimes.

 

Super Contributor
MidnightVoice
Posts: 8,157
Registered: ‎03-25-2007
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Re: SubPrimers...Very Good News!




Noah_Bodie wrote:
 
 

I ain't buying the good news. I say the AU issue alone is going to drive down the FICO scores of millions, some seeing significant decreases, and many being husbands and wives who are already responsible for one another's debts.



Well, it will be good news for lenders, just not for consumers  :smileyvery-happy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007
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Re: SubPrimers...Very Good News!



MidnightVoice wrote:
 
Well, it will be good news for lenders, just not for consumers  :smileyvery-happy:


Doh, ya got me.
 
Moderator Emeritus
fused
Posts: 16,373
Registered: ‎03-12-2007
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Re: SubPrimers...Very Good News!



Noah_Bodie wrote:
 
The company plans to begin delivering the new FICO® score innovations starting in September.
...

Fair Isaac's development tests indicate that the new Classic FICO® score research model increases predictive strength by 5-15 percent, with the largest increases coming in three important consumer segments:

  • Originations and new accounts
  • Borrowers who pose higher risk, often referred to as subprime borrowers
  • Borrowers with thin or young credit bureau files

I ain't buying the good news. I say the AU issue alone is going to drive down the FICO scores of millions, some seeing significant decreases, and many being husbands and wives who are already responsible for one another's debts.

I also predict the end result will be more subprimes.

 



With regard to AUs, I am in total agreement with you. The good news applies to those who only qualify for sub-prime CCs. Their scores are not suppose to drop simply beacause they have sub-prime CC TLs on their CRs.
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1

Established Contributor
Revike
Posts: 720
Registered: ‎05-04-2007
0

Re: SubPrimers...Very Good News!

The effect on actual loans may not be as great as the effect on scores. Knowledgeable mortgage lenders and auto lenders already disregard AU impact on scores. The scoring change will just make it less work for them to do what they are already doing.

Of course, I don't know what percentage of lenders would be considered knowledgeable and what percentage don't bother to read past the score on their copy of the CRs ...

:smileyhappy:

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