topic Fico XD/Updated with additional questions in Understanding FICO® Scoring

Fico XD/Updated with additional questions

Anonymous — Thu, 27 Dec 2018 01:10:08 GMT

My discover card that I was approved for arrived in the mail today. On the paperwork that came with the card it lists my approval score as Fico XD 716 from Equifax.

I can find very little information on this scoring model other than it scores you based on your payment of utilities. The only utility I have in my name is a cell phone bill but it's not a contact type of bill, more along the lines of a prepaid type of thing, so I am having problems understanding how they could score me based on this.
Can anyone give a little more details on how this scoring model works?
Also, could this be an indicator of what my traditional scores might be once they generate?
-----------Update--------
When I signed into my discover card account this evening I had a window pop up asking if I wanted to see my new scores. Discover is now giving me a Fico 8 TU score. I wasn't expecting a fico score for a few more months. I've only had active credit accounts since Sept of this year.
So, I log into credit karma to look at my accounts ( I know not to depend on the scores) and I see I have an account listed for an account I checked into several years ago but never used which hasn't updated since Sept of 2016. It's listed as current and in good standing. This company is no longer in business. Could this account be the reason I got a Fico score so quickly?
Also this greatly increases my oldest age of accounts so I'm guessing that once I generate Fico scores with the other bureaus if this account isn't listed that it will make a large impact on my scores?

Re: Fico XD

Meanmchine — Sat, 22 Dec 2018 06:06:37 GMT

Without sounding snarky, did you try Google ?

Re: Fico XD

Pikaboo-icu — Sat, 22 Dec 2018 06:11:58 GMT

https://www.fico.com/en/newsroom/fico-continues-to-expand-access-to-credit-with-new-fico-score-xd-2

Re: Fico XD

Anonymous — Sat, 22 Dec 2018 08:32:31 GMT

@Anonymous wrote:
My discover card that I was approved for arrived in the mail today. On the paperwork that came with the card it lists my approval score as Fico XD 716 from Equifax.

Interesting. Perhaps Discover has moved from using FICO 8 to XD for the CC approvals. If so, I'm surprised there isn't more talk about this. For those in the know, how does the XD model compare to Classic 8 and which factors are more heavily scored with this model?

Re: Fico XD

Anonymous — Sat, 22 Dec 2018 09:12:59 GMT

@Pikaboo-icu wrote:
https://www.fico.com/en/newsroom/fico-continues-to-expand-access-to-credit-with-new-fico-score-xd-2

Glad you provided this informative link! Until this thread, I was not aware we have another new FICO Scoring Model XD2 to learn about and deal with. The collaboration of Experian, Equifax and LexisNexis should certainly give us some pause? Now when one goes to receive approvals and needs to unfreeze their credit reports ... do we need to unfreeze three bureaus/information gathers?

Re: Fico XD

Remedios — Sat, 22 Dec 2018 19:50:08 GMT

@Anonymous wrote:
@Anonymous wrote:
My discover card that I was approved for arrived in the mail today. On the paperwork that came with the card it lists my approval score as Fico XD 716 from Equifax.

Interesting. Perhaps Discover has moved from using FICO 8 to XD for the CC approvals. If so, I'm surprised there isn't more talk about this. For those in the know, how does the XD model compare to Classic 8 and which factors are more heavily scored with this model?

It's used primarily for people with limited or no CR data.

Once FICO 8 is generated, XD is not used

Re: Fico XD

Pikaboo-icu — Sat, 22 Dec 2018 20:22:11 GMT

@Anonymous wrote:
@Pikaboo-icu wrote:
https://www.fico.com/en/newsroom/fico-continues-to-expand-access-to-credit-with-new-fico-score-xd-2
Glad you provided this informative link! Until this thread, I was not aware we have another new FICO Scoring Model XD2 to learn about and deal with. The collaboration of Experian, Equifax and LexisNexis should certainly give us some pause? Now when one goes to receive approvals and needs to unfreeze their credit reports ... do we need to unfreeze three bureaus/information gathers?

No worries my friend..

I just learned of it as well.

Sure seems like overkill to me..

Re: Fico XD

Thomas_Thumb — Mon, 24 Dec 2018 19:45:58 GMT

@Anonymous wrote:
@Anonymous wrote:
My discover card that I was approved for arrived in the mail today. On the paperwork that came with the card it lists my approval score as Fico XD 716 from Equifax.

Interesting. Perhaps Discover has moved from using FICO 8 to XD for the CC approvals. If so, I'm surprised there isn't more talk about this. For those in the know, how does the XD model compare to Classic 8 and which factors are more heavily scored with this model?

Fico XD has been around for a couple years. It was targeted toward scoring those new to credit that did not have a standard Fico score. The "XD2" must be a tweaked version. It was developed as an alternative to the L2C score. Discover has been using L2C for those new to credit that don't have standard Fico scores. As with L2C and VantageScore 3.0 XD looks at rental history and may look at payment history for utility, cell phone and other monthly service bills as factors in scoring. [side note - TransUnion purchased L2C at the end of 2015].

BTW - I was looking forward to becoming a senior before year end but, it's apparently not my time. Generally 3000 is the ticket.

Below is a link to an XD discussion in late 2015.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/New-fico-score-model/m-p/4319375#M101238

Below is an excerpt from a 2015 communication on Fico XD.

Re: Fico XD

Anonymous — Mon, 24 Dec 2018 01:19:40 GMT

Thank you to those of you that took the time to provide answers and/or links.
I can only hope that my actual scores will be comparable once they generate.

Re: Fico XD

Anonymous — Thu, 27 Dec 2018 01:09:26 GMT

If anyone could please read the update in my original post it would be greatly appreciated.

Re: Fico XD/Updated with additional questions

iv — Fri, 28 Dec 2018 00:15:10 GMT

@Anonymous wrote:

When I signed into my discover card account this evening I had a window pop up asking if I wanted to see my new scores. Discover is now giving me a Fico 8 TU score. I wasn't expecting a fico score for a few more months. I've only had active credit accounts since Sept of this year.
So, I log into credit karma to look at my accounts ( I know not to depend on the scores) and I see I have an account listed for an account I checked into several years ago but never used which hasn't updated since Sept of 2016. It's listed as current and in good standing. This company is no longer in business. Could this account be the reason I got a Fico score so quickly?

Yes.

If you had no credit data at all prior to Sept 2018, you would have had to wait six months to generate a score.

But since you had an existing account older than six months still listed (but not being actively updated), the moment your new account(s) started reporting, you had both of the minimum requirements to generate a score. (An account older than six months, and an account that has reported within the last six months. They don't need to be the same account.)

@Anonymous wrote:

Also this greatly increases my oldest age of accounts so I'm guessing that once I generate Fico scores with the other bureaus if this account isn't listed that it will make a large impact on my scores?

"Large impact"? Well... probably not, no. A single account from Sept 2016 and one (or more?) accounts from Sept 2018 doesn't result in a very high AAoA, and the effect of a 2-year AoOA is likely swamped by having brand-new accounts reporting.

If this 2-year-old account is only on 1 or 2 CRAs, there may be a small difference from it's absence on the others, but I wouldn't expect it to be major. It's certainly a good thing to have reporting, though.

Since you are already checking your EQ and TU reports with CreditKarma, you should also sign up with Experian directly to check your EX report (and get a free monthly EX FICO 8 in the process):

https://www.experian.com/consumer-products/credit-score.html

Re: Fico XD/Updated with additional questions

Anonymous — Fri, 28 Dec 2018 01:28:34 GMT

Thank you @iv for your lengthy answers to my questions.
This older account only shows on TU so I guess I'll have to wait for my other Fico scores.
I do have an account with Experian which tells me they don't have enough information to give me a score which is why I was shocked that I had one with TU but I completely understand now. I was originally with the understanding that it had to be an active account to count.

As a side note, with so many people discussing the differences in Fako VS Fico score, I am delighted to say that in my case they are no where close to being accurate. CK has my TU at 653 but my true Fico score is 751..... Almost a 100 point difference!!!!!