topic Re: Does FICO9 really matter in Understanding FICO® Scoring

Does FICO9 really matter

PrinceCorwin — Mon, 05 Jun 2017 22:15:28 GMT

NFCU recently started giving members access to their Eq FICO9 score. Is this score relevant?

Re: Does FICO9 really matter

SouthJamaica — Mon, 05 Jun 2017 22:34:06 GMT

@PrinceCorwin wrote:
NFCU recently started giving members access to their Eq FICO9 score. Is this score relevant?

Yes it is. Lenders are starting to roll it out. I recently had my TU Bankcard 9 pulled by Lake Michigan Credit Union, Marcus (the installment loan lender operated by Goldman Sachs) uses FICO 9 Classic on all applications it appears. Redstone FCU uses Classic 9 too. Someone reported the auto dealer he works for pulling the Auto 9 score.

Re: Does FICO9 really matter

Anonymous — Tue, 06 Jun 2017 01:12:35 GMT

From what I understand, FICO 09 scores generally aren't that far off from FICO 08 scores for most people. So, even if a lender goes off of FICO 08 scores, your FICO 09 scores should still be of some use to you.

Re: Does FICO9 really matter

Revelate — Tue, 06 Jun 2017 05:27:15 GMT

@Anonymous wrote:
From what I understand, FICO 09 scores generally aren't that far off from FICO 08 scores for most people. So, even if a lender goes off of FICO 08 scores, your FICO 09 scores should still be of some use to you.

Think it's night and day for people with old derogatories TBH . 730 vs 780 isn't trivial and there are a bunch of us that seemingly have that distribution on old derogs like tax liens.

Re: Does FICO9 really matter

pizza1 — Tue, 06 Jun 2017 12:52:17 GMT

@Revelate wrote:
@Anonymous wrote:
From what I understand, FICO 09 scores generally aren't that far off from FICO 08 scores for most people. So, even if a lender goes off of FICO 08 scores, your FICO 09 scores should still be of some use to you.
Think it's night and day for people with old derogatories TBH . 730 vs 780 isn't trivial and there are a bunch of us that seemingly have that distribution on old derogs like tax liens.

You are spot on Rev.

For me, at least, the difference is very much night and day. My FICO 08 EQ was/is 669, and NFCU has my EQ FICO 09 at......717! Huge difference! I like 09!! LOL

Re: Does FICO9 really matter

Anonymous — Tue, 06 Jun 2017 14:58:08 GMT

Same here! My FICO 8 scores are FAIR and range from mid to high 600's. While my FICO 9 scores are all GOOD and range low to mid 700s. I am happy to hear some banks are starting to use it.

Now...if only my FICO 9 score was the only thing considered when applying for credit...

Re: Does FICO9 really matter

Anonymous — Tue, 06 Jun 2017 19:17:05 GMT

You guys are referencing 30-50 point differences between FICO 08 and FICO 09 scores and that's on the high end of the variances. Naturally, there are many people with closer 08 and 09 scores. While 30-50 points may be a big difference, I don't consider it "huge" the way some other FICO scores can be 100 points or more off from FICO 08s.

I agree with what Rev said above regarding negative items, though.

Re: Does FICO9 really matter

Anonymous — Tue, 06 Jun 2017 19:54:37 GMT

Does anyone know for certain how FICO 9 handles small unpaid collections? (Less than $100.)

In FICO 8 they are ignored.

FICO 9 ignores all paid collections of any size.

I am curious what kinds of things would make a person score significantly better on FICO 8 than FICO 9. (The small collection thing would be one way.) Most people who report a significant difference talk about how their scores are better with 9, rather than the other way around.

Re: Does FICO9 really matter

Thomas_Thumb — Tue, 06 Jun 2017 21:27:37 GMT

A point of possible interest to some:

Fico 8 industry enhanced versions top out at 900.

Some, possibly all, Fico 9 industry enhanced versions top out below 900.

Examples: TU Fico Bankcard 9 = 893, EX Fico Bankcard 9 = 894.

BTW - I don't expect Fico 9 to gain much traction as the "advantages" over Fico 8 are not major. Perhaps a TBD version that includes trended data analysis will be heir apparent to Fico 8 and hopefully the archaic Classic Ficos used for mortgages.

Re: Does FICO9 really matter

Anonymous — Tue, 06 Jun 2017 23:49:05 GMT

I would love to see trended data taken into consideration. I think in time it would create quite a change to consumer spending/payment patterns... and put to rest some of the argument that FICO scores are all about profit and such.

Re: Does FICO9 really matter

Revelate — Wed, 07 Jun 2017 05:37:23 GMT

@Anonymous wrote:
I would love to see trended data taken into consideration. I think in time it would create quite a change to consumer spending/payment patterns... and put to rest some of the argument that FICO scores are all about profit and such.

Hrm, why do you think people would change their habits? People still on average virtually ignore their credit score unfortunately. Under or unbanked 30% or whatever isn't going to be getting free credit scores from their banks / CC issuers nor are they likely going to be reading the sites that promote good credit or financial habits... much as they likely don't today.

I think the vast majority fall into my dad's trap of "we're doing OK" and then not really trying to ruthlessly maximize things like we do here.

Re: Does FICO9 really matter

Anonymous — Wed, 07 Jun 2017 11:48:54 GMT

I think it would depend on how impactful trended data is to scoring. If it's not much of an impact, you're absolutely right and it will have no effect. If it IS heavily considered, it could take people with good scores and make them fair, thus preventing them from securing loans at the most favorable rates, from getting approved for the cards they want, etc. If that's the case, it wouldn't take long for people to become more educated on the subject (outside of just us hardcores) as ignoring it could prevent people from obtaining the credit they want/need. I think the biggest factor here is how much scoring weight trended data is going to have.

Re: Does FICO9 really matter

Revelate — Wed, 07 Jun 2017 16:16:09 GMT

@Anonymous wrote:
I think it would depend on how impactful trended data is to scoring. If it's not much of an impact, you're absolutely right and it will have no effect. If it IS heavily considered, it could take people with good scores and make them fair, thus preventing them from securing loans at the most favorable rates, from getting approved for the cards they want, etc. If that's the case, it wouldn't take long for people to become more educated on the subject (outside of just us hardcores) as ignoring it could prevent people from obtaining the credit they want/need. I think the biggest factor here is how much scoring weight trended data is going to have.

Hrm, random thought: after people sort their forever home, how much do they focus on credit? I do know that I flatly lost my way in the few months post mortgage, though it didn't stick in my case.

Credit cards: no problem, at least in the current credit market.

Autos: can always get sorted at a 20% if you had to and some people don't understand interest rates I suspect. If you belong to a CU you can still get 6% even with mid 600's though.

Mortgage: irrelevant for folks in forever home if they're not looking to be future landlords

HELOC no biggie, that's a mid 600's score too if you check CU's.

Student: Fed loans are credit independent, private ones OK credit score is useful there.

We've been talking on other threads lately about people's habits regarding finances and mention has been made of many taking a pretty whateverish view of the world, wonder how much it's really any different with credit.

My hobby participating in soccer league that recently started issuing corporate cards (Amex, yay, and my god are they slow compared to their personal cards) and just casually talking to the people who have been trying to get one, their credit is throughly average (660ish for many). As is we're likely floating people's cash and check registrations on one of my personal credit cards for later reimbursement because this corporate card thing is working out so poorly and we parents effectively have to pay by credit card or we have to jump through all sorts of stupid hoops to fix that.

That little story doesn't mean much except to say when I've talked to them they have simply admitted their score like it isn't a big thing, whereas I'm internally thinking even with all my issues I was markedly higher than that for most of my tenure here on this forum.

Re: Does FICO9 really matter

rebound2014 — Thu, 08 Jun 2017 00:29:27 GMT

@SouthJamaica wrote:
Yes it is. Lenders are starting to roll it out. I recently had my TU Bankcard 9 pulled by Lake Michigan Credit Union, Marcus (the installment loan lender operated by Goldman Sachs) uses FICO 9 Classic on all applications it appears. Redstone FCU uses Classic 9 too. Someone reported the auto dealer he works for pulling the Auto 9 score.

I don't really have anything useful to contribute to the conversation... I just noticed the RFCU reference and had to comment since I was Born/Raised in Huntsville. It's a very localized CU, one that I have never seen mentioned here in the forums. Still, this is VERY good information to know for future endeavors w/them..

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