##### Re: CFPB released a report comparing FAKOs, FICOs, and VantageScore

10-02-2012 11:51 AM

As it is clear that "correlation" behaviors aren't generally known, Just a note of clarification.

Correlation values of .99 do not mean that 99% of the scores match or that two scores will only be, on average 1% off. It's a statistical measure and one that leaves a lot of room for variation in FICO scores. It's also kind of weird in that as it increased it tends to overstate what one would expect.

For instance if a correlation of .92 produces a typical variation of 40 points (using FICO scaling and taking a SWAG) around the 620 mark, a correlation of .98 would only reduce the expected variation to 20 points. Alternately, if 1 out of 4 people had no history of autoloans and took a 40 point hit as a result but otherwise matched the generic FICO that would also produce a correlation of .98

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so my moniker is, well, rather out of date.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