Re: CFPB released a report comparing FAKOs, FICOs, and VantageSco
10-01-2012 03:05 PM
I find it difficult to believe that Classic FICO and Industry Specific FICO correlate at .99.
All the Industry Specific FICO run the Classic FICO Scorecards and then add two additional Scorecards can affect that score by 50 points in either direction. The stated goal of each industry is to give a score that is equivalent risk as the same Classic FICO but limited to that industry. In other words, a CC Industry FICO of 700 is the same risk for a CC as another person that had a Classic FICO of 700.
From the report:
"CFPB analyzed credit scores from 200,000 credit files from each of the three major nationwide CRAs: TransUnion, Equifax, and Experian."
"FICO Auto scores had a correlation of 0.99, 0.95, and 0.98 for bureaus 1, 2 and 3 respectively with a generic FICO score. FICO Bank Card scores had a correlation of 0.99, 0.99, and 0.99 for bureaus 1, 2, and 3 respectively with generic FICO scores."
This is by far the largest sample setI've seen so I'm inclined to believe it.
I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.
WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k