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Dakota17
Posts: 2
Registered: ‎09-03-2012

Upgraded FICO Score

I recieved a notice that my FICO Score has been "Upgraded".  I check my score and found that it dropped 48 points.  After doing so research online I found that a new Formula called FICO 9 is now being used.  I have been working hard to get my score to wher eit was and n ow I have to start all over.  What gives?  Why the change?  I am afraid that I will be deemed a "higher risk" for deliquency. NOT HAPPY.

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Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010

Re: Upgraded FICO Score

[ Edited ]

Lenders use a wide variety of scoring systems to evaluate your credit standing.

 

Because of this, the reality is that there's not a single "right" score -- we all have multiple scores.

 

What I have found most valuable for myself is to use a score as an indicator, that points at certain areas that I may wish to try to improve over time.  A couple of big examples here are (1) avoiding derogatories, and (2) keeping utilization low.

 

It's also the case that lenders often use scores that are not available to consumers, which means that no matter how hard we try, we won't necessarily know the score that a lender is going to use when we apply for credit.

 

Moderator
Revelate
Posts: 8,478
Registered: ‎12-30-2011

Re: Upgraded FICO Score

[ Edited ]

To be clear, it's FICO 8 for Scorewatch and also now for TU Quarterly Monitoring if you've been upgraded recently.

 

FICO 9 hasn't been released quite yet, due sometime this summer.

 

Most of the drops reported have been from files which didn't have a good mix of open tradelines: all revolving (like 20-30 points anecdotally) or all installment (50ish points from reports).  I'm certain there's other reasons too but these seem to be the two ones which are commonly coming up when we have people describing their files and seeing changes under the new Scorewatch with recent installment loans being PIF'd and seeing a larger than expected (under the old model) drop.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Established Member
vtskier
Posts: 22
Registered: ‎06-07-2012

Re: Upgraded FICO Score

You are not alone. My score was 668 before the change and 634 after it. Using the score modeler if I make 24 on time payments my score will go back to close to what it was. Good thing I got my car loan last month!!!!

New Contributor
msbia
Posts: 53
Registered: ‎02-22-2014

Re: Upgraded FICO Score


vtskier wrote:

You are not alone. My score was 668 before the change and 634 after it. Using the score modeler if I make 24 on time payments my score will go back to close to what it was. Good thing I got my car loan last month!!!!


+1, I am so glad that I secured my 3.3% financed car mid-May because I doubt that I'd be approved with my "new" score.
NFCU cashRewards Signature Visa $12.5K, NavCheck $10K, USAA Affiliate MC $7K, USAA World MC (Chip/Pin) $5k, USAA Rewards Amex $4.5K, StdReg CU $1,000, Care Credit $1,500, Macy's $1k, Amazon Store $900, USAA Amex (secured) $500, Walmart Store $900, Chevron $650, Discover IT (secured) $200.,
EXP Fico 660 (4/3/14), EQ Fico 691 (5/8/14 lender pull), TU Fico 688 (4/5/14). Util: 8%. Last App 4/18/14 - Approved. Apps: On ice until 11/8/14.
New Member
ali9021
Posts: 1
Registered: ‎11-11-2012

Re: Upgraded FICO Score

 Yeah my score dropped about 45 pts with the upgraded FICO score:smileymad:


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