topic Re: What is all about newfico in Understanding FICO® Scoring

What is all about newfico

Red1Blue — Sun, 26 Jan 2020 14:51:41 GMT

I keep reading on the internet about new FICO and several people might have low scores due to this change in scoring.

Re: What is all about newfico

tparks5961 — Sun, 26 Jan 2020 15:03:25 GMT

I think whats happening is the credit market is getting too loose.

Due to the credit crisis in the past a some companies were probably late to jump on the band wagon.. and with banks making so much,

even more companies are starting to jump on the train and just give out credit.

I think the sole reason for the change is to kind of pump the breaks and prepare the country for the inevitable credit pullback.. Depending on events later this year, there could be a significant pullback in the overall markets in general.. I think the banks are just getting ready.

Re: What is all about newfico

GApeachy — Sun, 26 Jan 2020 15:23:41 GMT

Check this out:

https://ficoforums.myfico.com/t5/Credit-in-the-News/FICO-Changes-Could-Lower-Your-Credit-Score/m-p/5888741

Re: What is all about newfico

Red1Blue — Sun, 26 Jan 2020 15:44:39 GMT

@GApeachy wrote:
Check this out:
https://ficoforums.myfico.com/t5/Credit-in-the-News/FICO-Changes-Could-Lower-Your-Credit-Score/m-p/5888741

I am too old for this. I'll use credit responsibly and pay it in full at the end of the month. No point in paying outrageous interest rates. It will take me few months to recover from derogs. I learned my lessons. I might just continue using my secured cards and live a quiet life. Tired of AZEO and all these techniques. Want to lead a comfortable and stress free life.

Re: What is all about newfico

gdale6 — Sun, 26 Jan 2020 18:12:33 GMT

Thread was moved from RYC to UFS for better exposure on the question.

Re: What is all about newfico

Anonymous — Sun, 26 Jan 2020 20:31:43 GMT

Concorduser AZEO and these other techniques are typically ways to pretty up your file when you’re getting ready to apply for credit. This is not something you have to do on a regular basis unless it’s something you just want to do.

Once you drop those derogatories, you can get a few unsecured cards, sit back use them responsibly and your scores will be fine. Age will contribute to your scores.

Then if and when you ever need to apply for credit, a loan, or a mortgage, you can use the techniques temporarily to improve your score.

Re: What is all about newfico

Azuieldrago — Sun, 26 Jan 2020 23:05:01 GMT

From what I read, using AZEO will no longer be really effective. One of the articles I read said that utilization will now have a memory and will list prior levels and lenders will be able to see what you have generally carried month to month to prevent temporarly raising scores to stretching people to thin on credit. So heavy users like Cap 1 will get you punished and personal loans are to be looked at less favorably. Basically, you get punished for using credit. Only thing not mentioned was mortgages and vehicle loans. I wonder if they are pushing that since more people tend to use cards. I have there will be pushback on the new model being rolled out.

Re: What is all about newfico

Anonymous — Mon, 27 Jan 2020 00:32:06 GMT

Most lenders have not even adopted version 9 yet, so I wouldn’t be too worried about 10 its a long time away and lenders can already see that information if it’s reported, varies by lender.

Re: What is all about newfico

Anonymous — Mon, 27 Jan 2020 02:09:58 GMT

It’s also noteworthy that AZEO relies on the number of accounts metric which has nothing to do with the utilization metric. They are separate scoring factors and the only thing they have in common is they both influence the same slice of the fico pie, although differently on different scorecards and algorithms.

But who knows what’s gonna happen with version 10.

Re: What is all about newfico

Revelate — Mon, 27 Jan 2020 17:52:33 GMT

@Anonymous wrote:
It’s also noteworthy that AZEO relies on the number of accounts metric which has nothing to do with the utilization metric. They are separate scoring factors and the only thing they have in common is they both influence the same slice of the fico pie, although differently on different scorecards and algorithms.

But who knows what’s gonna happen with version 10.

This is the clutch point (and only rational one of the entire conversation in the entire media frenzy over the past few days).

We do not know specifics, at all. I'm guilty of some wishful thinking / conjecture in the main thread we have running on FICO 10 but the fact is neither I nor anyone else that's not covered by a F'n hardcore NDA inside FICO knows what's up... and it's a really small number of people inside the moat too.

Really if we were looking at trended data we might be able redo ALL of the revolving utilization metrics... but it's about patterns, and as such there may still be patterns in the data which provide better resolution than even trended data (TD) will.

We just don't know, the only concrete thing we know is that FICO 10T (or whatever it's named eventually) will look at TD, and it's been released that installment loans will be scored differently than the current algorithms, but everything else is conjecture.

Re: What is all about newfico

Anonymous — Tue, 28 Jan 2020 20:19:13 GMT

I find myself being really thankful that I've prepped for my construction loan now, under the umbrella of a known model so that I can take advantage of methods like AZEO and have it count.

I've heard that even when FICO 10 (or whatever its called eventually) is rolled out, that it will take some time for adoption, and not all lenders will adopt it. I also have read that it won't roll out until later in the summer/early fall 2020. This is from articles in the WSJ and NYT, so responsible reporting.

Re: What is all about newfico

Revelate — Tue, 28 Jan 2020 20:35:58 GMT

@Anonymous wrote:
I find myself being really thankful that I've prepped for my construction loan now, under the umbrella of a known model so that I can take advantage of methods like AZEO and have it count.

I've heard that even when FICO 10 (or whatever its called eventually) is rolled out, that it will take some time for adoption, and not all lenders will adopt it. I also have read that it won't roll out until later in the summer/early fall 2020. This is from articles in the WSJ and NYT, so responsible reporting.

Actually the roll-out is when they go on sale.

It will probably be between several months and several years before it makes any substantial inroads. FICO 9 has been around for a bit now and it just hasn't been that well adopted for example, and the classic scenario is the GSE's are still on scores that are between 16-22 years old now and as the GSE's go so does pretty much the entire rest of the mortgage market.