Moderator Emeritus
Posts: 12,895
Registered: ‎12-30-2011
Re: Experian roles out new credit score
[ Edited ]

jetsfan2012 wrote:

Doubt this will stick around.

And what would replace it?  Right now the sub/-prime and lower market is best served by internal lending models; however, the data each lender has is substantially less than Experian's own result set.  If this new score produces a higher profitability for a lender's portfolio, then they'll switch to this until their internal algorithms catch up / surpass it.  


It's probably cyclical between FICO et al. vs. internal lending models as to their relative weights in an underwriting model; and frankly if FICO was best for each and every individual consumer (or lender for that matter) it would be the only score in existance.  The fact that it isn't, means there's opportunities for money to be made in the margins of the algorithm.


Odds are more likely FICO comes up with a product to match, than Experian's going away.


Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 700, TU 04 731, EX 98 725 (05/24/15)
Goal Score: 700 on EQ 04 (01/01/16)

Take the myFICO Fitness Challenge