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The many flavors of FICO:__Editions, versions, and variations

Valued Member

Re: The many flavors of FICO:__Editions, versions, and variations

jello77,

 

Totally agree.

 

I am largely a conservative by nature (politically), but this is one area where I am completely floored that the Government has not stepped in tried to regulate more.

 

When you consider that lending eligibilty and home purchasing is one of a few MAJOR arteries that feed economic growth - you'd think that the feds would be more cautious about how credit scores are calculated and who gets access to what. Your Microsoft analogy is pretty spot on. It's a literal mess. And the fact that the credit scoring aspect of home buying is mostly controlled by the private sector is somewhat absurd, especially when you consider how much regulation happens on far less important issues.

 

I feel like FICO was a quick bandaid solution to determine loan eligiblity when the housing market boomed. But in an age of iphones, touch screens, and putting robots on mars - you'd think we'd have something better in place that determines someone's credit worthiness, instead of leaving people's fate in the hands of a couple 3 digit numbers.

 

And if it absolutely must be those 3 digit numbers, find a better way to standardize it so there aren't umpteen different versions floating around and a system that is understood by a very small minority of people who actually have the time and patience to learn about it.

 

Message 81 of 141
Moderator Emeritus

Re: The many flavors of FICO:__Editions, versions, and variations

Daudi,

 

As of a few weeks ago, when you purchase your scores at myFICO via a single or three report pull you will receive many different scores, including the standard 08 model, bankcard enhanced models, and the models used in mortage lending, among others.

Message 82 of 141
Contributor

Re: The many flavors of FICO:__Editions, versions, and variations

 

In addition to an improved FICO naming scheme, another favorable trend is that more and more credit cards issuers are starting to provide free FICO scores on a regular basis to card holders.

 

Because credit scores have become so important to a consumer's life, there have been pressures for Congress to increase regulation of credit reporting and scoring.

 

In 2003, Congress mandated that consumers can obtain free credit reports once yearly.

 

Since then, there have been legislative proposals to require easier access to credit scores, to regulate the price of scores, and to require free access to scores in some circumstances.

 

In response to these proposals, FICO has been making numerous changes in an attempt to head off additional regulation.

 

In addition to making more FICO versions available to the public for a fee, FICO has a program called FICO Score Open Access whereby credit issuers are encouraged to provide free scores to customers.

 

Within a few years, it may become standard practice for credit card users to get a free FICO score updated each month.

 

Such free and easy access to FICO scores should help improve public understanding of credit scores and reduce the current confusion.

 

EQ-04 FICO__804__(from DCU)__inquiries = 0
EQ-08 FICO__826__(from MyFICO)__inquiries = 0
EX-98 FICO__837__(from PSECU)__inquiries = 0
EX-08 FICO__813__(from MyFICO)__inquiries = 0
TU-08 FICO__820__(from MyFICO)__inquiries = 0
Oldest account 36 yrs / Newest account 2 years / Average age 12 yrs / Total accounts 10 / Accounts reporting balance = 2 / Util = 3%
Message 83 of 141
Valued Member

Re: The many flavors of FICO:__Editions, versions, and variations

jello77,

 

That's great. Hopefully the free scores are actually useful and aren't what are currently offered by many credit cards - which is to say, completely useless.

 

The one part I hope they actually do regulate, amongst all the other items you listed - is the algorithm itself and how it's coded. As far as I know, it's more or less like Google - a closely guarded algorithm that nobody other than the companies themeselves know about.

 

I don't necessarily need/want to know the algorithm itself (that's another debate altogether) - but it would make me feel better to know that there is a "watchdog" of sorts that keeps checks and balances on the algorithm and updates to the algorithm to increase fairness and a level playing field. 

Message 84 of 141
Valued Member

Re: The many flavors of FICO:__Editions, versions, and variations

NewGuy

 

Odd, I just purchased my transunion and experian yesterday and did not see anything other than the standard myfico scores that I've always received. 

 

Is there a special process that I should have gone through?

Message 85 of 141
Moderator

Re: The many flavors of FICO:__Editions, versions, and variations


daudi81 wrote:

NewGuy

 

Odd, I just purchased my transunion and experian yesterday and did not see anything other than the standard myfico scores that I've always received. 

 

Is there a special process that I should have gone through?


The newer scores aren't on the report themselves but you should see a link to see them when you log into your account

Message 86 of 141
New Member

Re: The many flavors of FICO:__Editions, versions, and variations

Thanks for this, I have been searching high and low.  I am actually doing some research for a book I'm writing.  This will be my second on the credit insudutry and I'm looking for the history of the credit score and how it eveolved from the first edition issued in the 80's to now.  There is alot of data about the differences between FICO 04 and FICO 08 and FICO 08 and FICO 09, but what I need to know is: 

 

What is the difference between the original FICO score and FICO 98, and then the differences between FICO 98 and FICO 04.  

 

It seems to me from my research thus far that Next Gen score type was never usued and FICO 95 never really caught on, so I'm just concentrating on these two models and their differences.  

Message 87 of 141
Regular Contributor

cide

I decided to get a new report with the FICO 8 scores, but I am confused about the other scores listed. Which one is used for mortgages? It's all confusing to me, I would appreciate help.

Message 88 of 141
Established Contributor

Re: The many flavors of FICO:__Editions, versions, and variations


mnl wrote:

I decided to get a new report with the FICO 8 scores, but I am confused about the other scores listed. Which one is used for mortgages? It's all confusing to me, I would appreciate help.


The standard scores currently required are:

  • Equifax Beacon 5.0

  • Experian/Fair Isaac Risk Model V2SM

  • TransUnion FICO Risk Score, Classic 04

 

On the MyFICO 3-B Score Report, those appear as:

  • Equifax FICO Score 5

  • Experian FICO Score 2

  • TransUnion FICO Score 4

Fairly well-labeled as "Commonly Used In Mortgage Lending" on the "View Additional FICO Score versions..." section.

 

(Might have taken MyFICO way too long to do that, but at least when they did, they did it right.)

 

 

EQ8:844 TU8:845 EX8:850 (MyFico) - 2017-10-16
Message 89 of 141
Regular Contributor

Re: The many flavors of FICO:__Editions, versions, and variations

Okay just to double check, the scores labeled "Commonly Used In Mortgage Lending"  are still actually used now a days?   

 

 

Message 90 of 141