topic Re: Changes in Spring to Fico Scoring (NO, not '08 AU) in Understanding FICO® Scoring

Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Sun, 23 Mar 2008 14:35:40 GMT

Go to Yahoo.com, there is a link to a CNN report (I can't get the vid link sorry).

Basically it says they are going to start giving more weight to:
Mixed forms of credit (revolve, auto, etc.)
Recent good payments
Consistent bad items
Recent Bad Items

and less to:
Older negative scores
'isolated' bad credit, i.e. if you have several good accounts but just one or two iwth bads

Which is good I'm thinking for a lot of us, since we've (hopefully) managed to get most of our baddies off. I'm hoping this really bumps my Equifax up since I have a 6 1/2 year old Cap1 CO and a Paid Collection but several good accounts.

I wonder how this is going to work with buckets?

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Sun, 23 Mar 2008 14:44:07 GMT

When is this supposed to go into effect?

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

marty56 — Sun, 23 Mar 2008 14:56:32 GMT

I would also like to see some work on INQs. Of the 5 INQs on my report (2 TU, 3EQ) only 2 are for new credit. The rest are for a checking account, cell phone and ATT-Uverse, none of which botherd to report on my CR.

Bring it on.

Message Edited by marty56 on 03-23-2008 07:56 AM

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

gamecockmd — Sun, 23 Mar 2008 14:45:12 GMT

Did they state when the implementation date was to be?

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Sun, 23 Mar 2008 14:48:53 GMT

@marty56 wrote:
I would also like to see some work on INQs. Of the 5 INQs on my report (2 TU, 3EQ) only 2 are for new credit. The rest are for a checking account, cell phone and ATT-Uverse, none of qhich bother to report on my
CR.
Bring it on.

I personally think that you should only have a window of time to report a user's account, after which you never can. If a cell-phone is going to post and slam your credit because you are late after having the account for two years, then they should HAVE to report when you are good. Otherwise it just becomes a weapon.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Sun, 23 Mar 2008 14:49:29 GMT

@gamecockmd wrote:
Did they state when the implementation date was to be?

They said this Spring. Which means anytime between last Thursday and never.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Sun, 23 Mar 2008 15:04:35 GMT

Interesting that the report was mis-informed about what makes up your score, the totally left out Debt/Credit ratio, which as far as I can tell is critical.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

haulingthescoreup — Sun, 23 Mar 2008 16:02:57 GMT

@Anonymous wrote:
Go to Yahoo.com, there is a link to a CNN report (I can't get the vid link sorry).

Basically it says they are going to start giving more weight to:
Mixed forms of credit (revolve, auto, etc.)
Recent good payments
Consistent bad items
Recent Bad Items

and less to:
Older negative scores
'isolated' bad credit, i.e. if you have several good accounts but just one or two iwth bads

Which is good I'm thinking for a lot of us, since we've (hopefully) managed to get most of our baddies off. I'm hoping this really bumps my Equifax up since I have a 6 1/2 year old Cap1 CO and a Paid Collection but several good accounts.

I wonder how this is going to work with buckets?

This is a pretty good summary of FICO 08. Those of us who are AU's have focussed so much on losing that history that many have lost sight of all the other changes. It is meant to be more forgiving of those with relatively few baddies, and those who have been pretty clean within the last two years.

I find it very interesting how many similarities it shares with the Vantage score, which is threatening FICO's market!

As to the buckets, I read that two are being added, both negative, but what they are, I have no clue. Probably one for someone like me, with a scattering of 30-days over multiple accounts.

I keep hearing this May for FICO 08. Keep in mind, though, that lenders will have to adopt FICO 08 for it to have any meaning. I'm expecting an extended period of mass confusion...

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Mon, 24 Mar 2008 15:36:20 GMT

@haulingthescoreup wrote:
@Anonymous wrote:
Go to Yahoo.com, there is a link to a CNN report (I can't get the vid link sorry).

Basically it says they are going to start giving more weight to:
Mixed forms of credit (revolve, auto, etc.)
Recent good payments
Consistent bad items
Recent Bad Items

and less to:
Older negative scores
'isolated' bad credit, i.e. if you have several good accounts but just one or two iwth bads

Which is good I'm thinking for a lot of us, since we've (hopefully) managed to get most of our baddies off. I'm hoping this really bumps my Equifax up since I have a 6 1/2 year old Cap1 CO and a Paid Collection but several good accounts.

I wonder how this is going to work with buckets?

This is a pretty good summary of FICO 08. Those of us who are AU's have focussed so much on losing that history that many have lost sight of all the other changes. It is meant to be more forgiving of those with relatively few baddies, and those who have been pretty clean within the last two years.

I find it very interesting how many similarities it shares with the Vantage score, which is threatening FICO's market!

As to the buckets, I read that two are being added, both negative, but what they are, I have no clue. Probably one for someone like me, with a scattering of 30-days over multiple accounts.

I keep hearing this May for FICO 08. Keep in mind, though, that lenders will have to adopt FICO 08 for it to have any meaning. I'm expecting an extended period of mass confusion...

First of all they didn't mention "'08" or the fact that Authorized Users would not be getting benefit anymore (which would be critical news) so I don't think this is *the* Fico '08. Second if it IS and they are releasing it, I guarantee you they did not include the AU modifications.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

BallBounces — Mon, 24 Mar 2008 16:31:28 GMT

nyccc2 wrote:

First of all they didn't mention "'08" or the fact that Authorized Users would not be getting benefit anymore (which would be critical news) so I don't think this is *the* Fico '08. Second if it IS and they are releasing it, I guarantee you they did not include the AU modifications.

Just because they did not mention "08" does not mean this is not what we understand to be the changes associated with "08". Most in the general public have no idea what "08" is, so why would they tag it as such.

Also, although the AU change is significant, it is not surprising that it may not be mentioned in a news story about the general scoring changes. There are several changes associated with the new scorong model that will effect consumers.

If I were guessing, the article IS about the FiCO08 changes, which INCLUDES but are not limited to removing the AU benefit, as well as the other important things you cited from the article.

The net is, let's not lose site of the various changes we anticipate in FiCO08.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Mon, 24 Mar 2008 16:48:07 GMT

I concur!

I have previously heard about all of the changes detailed in this thread in the context of FICO 08. There are other changes taking effect with FICO 08 besides the one involving AUs.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Mon, 24 Mar 2008 17:06:01 GMT

@Anonymous wrote:
I concur!

I have previously heard about all of the changes detailed in this thread in the context of FICO 08. There are other changes taking effect with FICO 08 besides the one involving AUs.

Well I say let's all AU's report back, if I was a betting man I'd put most everthing I have that AU will NOT happen in 'Fico '08'.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

RobertEG — Mon, 31 Mar 2008 23:11:25 GMT

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Mon, 31 Mar 2008 23:38:21 GMT

I hate to have to chime in each time they post this but sorry, it will NEVER happen. NEVER. Let's all meet back here in September and see how many AU's dropped. It won't happen. Scare tactics.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

RobertEG — Wed, 02 Apr 2008 03:32:28 GMT

So, myccc, are you saying that FairIsaac is intentionally lying in its public press releases as a "scare tactic?" Waht would be their motivation in doing that? Sure, whether lendors choose to use the new FICO 08 model once released or continue to use the old model is up to each lendor, but why would FairIsaac intentionally release misinformation about their new model? I dont get your drift.....

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Wed, 02 Apr 2008 05:16:40 GMT

I think the truth is there is a lot of turbulence these days in the whole consumer credit atmosphere, and changes and rollouts and whatnot that had been set for certain times may be delayed or may in fact never happen.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

Anonymous — Wed, 02 Apr 2008 13:37:11 GMT

@RobertEG wrote:
So, myccc, are you saying that FairIsaac is intentionally lying in its public press releases as a "scare tactic?" Waht would be their motivation in doing that? Sure, whether lendors choose to use the new FICO 08 model once released or continue to use the old model is up to each lendor, but why would FairIsaac intentionally release misinformation about their new model? I dont get your drift.....

I'm saying that for whatever reasons, probably political, Fair Isaac is making noises about 'fixing the AU loophole', but is very aware that doing so will open it to massive lawsuits and it will be far more trouble then it is worth. It won't happen.

Now the only thing that gives me pause in all this, are the *current* political winds, what with all the ineligible borrowers getting loans during the 'predatory lending'.

I'd imagine that things will stay the way they are; most CC's will use the model as it exists, for larger lines or for mortgages, they either will (or will be forced t0) manually review reports in part to discount an AUs and really examine credit-history, not just rely on a score.

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

rom828 — Sat, 05 Apr 2008 23:20:20 GMT

I wonder with the new 12 divisions, how one is classified as being in the 4 with bad credit.

I have 14 accounts: mtg, auto loans, retail and credit cards, on my report.

I do have an unpaid c/o from 05-05 that I've been researching on this forum as to how to handle and think I've decided...waiting to hear back from another member.

I have a paid c/o from 11-03 and a PR 10-98 for a state tax lein. That one shows 04-04 release but I have no record of pyt then. I'm trying to get corrected pay date from state as my avaialble records go back to 2000 and I dont have a pyt showing from then til now, so good chance this one will come off sooner than it now indicates.

All my other accounts show paid or paying as agreed. I do need to work on paying down my 2 CCs to improve my utilization, and when I take care of the unpaid C/O the util. will really go down, as the unpaid am't is half my util.

With what I previously read about the new 08 scoring, I felt pretty encouraged that I'd see a jump as I don't have a lot of reaLly recent bads and all these other good accts.

I just wonder how I'd be classified. I'm still a little confused with how buckets are determined with the current system. I think from what I read it's possible that when my PR comes off I could go in a bucket that's scored more stringently and my score could actually go down.

I just can't wait til I get my score to the point where all this won't really affect me that much and I can quit obsessing about my score!!

FICO EQ 633 FICO EX 640 FICO TU 654

Re: Changes in Spring to Fico Scoring (NO, not '08 AU)

RobertEG — Sun, 06 Apr 2008 00:44:08 GMT

Great insights! I recall that FairIsaac released a "new version" of FICO a few years ago (I think it was called Improved FICO, or some silly new neat nomer like that), and that the creditors stayed away from it in droves. So, I think the observation that, regardless of what FairIsaac intends or does not, it will be their clients who determine which version of FICO prevails. Certainly, they will not discontinue the sale of the current version, and if clients do not want to exchange their current, comfortable well-understood and well-worn shoes for a new pair of shoes that create callouses, they are are a business,, and wont forgo the $$$.

Just like Clinton/Obama/McCain, it is packaging that is the attempt to sell, but it is ultimately the decison of the consumer/voter to determine the new czar.