topic Re: Why such a difference between FICO Auto 2 and 8 ? in Understanding FICO® Scoring

Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Tue, 26 Jan 2021 01:22:39 GMT

So according to Experian, my Auto 2 score is 612 and Auto 8 score is 693.

Why such a huge difference between them? Especially considering that we've had perfect auto financing over 30 years - never ever had a late payment, etc.

Anyone know what they changed between the 2 different models?

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Tue, 26 Jan 2021 02:34:00 GMT

@Anonymous wrote:
So according to Experian, my Auto 2 score is 612 and Auto 8 score is 693.

Why such a huge difference between them? Especially considering that we've had perfect auto financing over 30 years - never ever had a late payment, etc.

Anyone know what they changed between the 2 different models?

Take a look at the reasons under each score. I notice on mine that E8 is 13 points higher than E2. I also note that they have different reasons codes for each model which are very different from each other as factors that lower my score.

My main 2 factors are:

-You opened a new credit account relatively recently

-Remaining balance on installment/mortgage loans is too high

-You've made heavy use of your available revolving credit(this is BS)

-You have a consumer finance account on your credit reports

The car loans that you've had in the past, who were they through? Without knowing more about your profile, you could have many CFAs.

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Tue, 26 Jan 2021 03:23:26 GMT

Good advice above regarding using the negative reason statements to determine why the variance is so large.

I have a 20 point variance between my EX Auto 2 and Auto 8 scores, 8 being the higher one.

Do either of you have an open auto loan currently? I don't. I have multiple closed auto loans, but no open ones. I wonder if EX Auto 2 likes to see an open auto loan.

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Tue, 26 Jan 2021 04:13:41 GMT

@Anonymous wrote:
Good advice above regarding using the negative reason statements to determine why the variance is so large.

I have a 20 point variance between my EX Auto 2 and Auto 8 scores, 8 being the higher one.

Do either of you have an open auto loan currently? I don't. I have multiple closed auto loans, but no open ones. I wonder if EX Auto 2 likes to see an open auto loan.

I have 1 closed auto loan and an open personal loan.

Re: Why such a difference between FICO Auto 2 and 8 ?

Slabenstein — Tue, 26 Jan 2021 04:30:59 GMT

OP, how do your classic EX8 and EX2 compare? Whether you do or don't see a similar difference might indicate whether the gap between your AU scores is due to a difference in those algos specifically or something broader in FICO 98 vs FICO8.

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Tue, 26 Jan 2021 13:48:10 GMT

@Anonymous wrote:
I have 1 closed auto loan and an open personal loan.

Good info. So you and I are the same in that neither of us have an open auto loan, but we have at least 1 closed auto loan on your CR. Both of our F8A scores are 13-20 points higher than our F2A scores. I'm not saying the lack of an open auto loan has to be the reason, but it's something worth looking at.

I'd like to hear from someone that has an open auto loan on their CR and how those 2 scores compare for them. OP, do you have an open auto loan?

Re: Why such a difference between FICO Auto 2 and 8 ?

tooleman694 — Tue, 26 Jan 2021 16:21:21 GMT

I have 2 open auto loans and several closed ones.

EX Auto 2 = 658

EX Auto 8 = 669

The score are not too far off from my Fico 8 672 and my Fico mortgage 659.

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Tue, 26 Jan 2021 16:44:14 GMT

@Anonymous wrote:
@Anonymous wrote:
I have 1 closed auto loan and an open personal loan.
Good info. So you and I are the same in that neither of us have an open auto loan, but we have at least 1 closed auto loan on your CR. Both of our F8A scores are 13-20 points higher than our F2A scores. I'm not saying the lack of an open auto loan has to be the reason, but it's something worth looking at.

I'd like to hear from someone that has an open auto loan on their CR and how those 2 scores compare for them. OP, do you have an open auto loan?

So here are some more details of what I have:

Open auto loan with Cap One (about 18 months old)

Had prior auto loans with Flagship Credit Acceptance and Mazda American Credit (even older loans than that but no longer showing)

We also have an open installment loan (non collateral) with a local bank that is about 2 years old (3 more years to go).

FICO Score 2: 609

FICO Auto 2: 621 - dinged for Serious Delinquency, High Credit Usage,Many New Accounts,Bad Payment History

FICO Auto 8: 697 - dinged for Serious Delinquency,High Credit Usage,Loan Balances,Short Account History

FICO Bankcard 2: 604

FICO Score 3: 621

FICO Score 8: 689

Just goes to show how much the numbers can vary. Also some of the "reasons" are BS. Many new accounts? OK in the last year a credit card account and installment loan (RV). Short account history? I can only assume they mean installment accounts since AAoA = 6.8 yrs and AoOA = 22.6 yrs

Now my spouse who has a very similar credit profile has significantly better Auto scores:

FICO Score 2: 668

FICO Auto 2: 707 - dinged for Negative Items,High Credit Usage,Bad Payment History,High Account Balances

FICO Auto 8: 724 - dinged for Collection And/Or PR,High Credit Usage,Loan Balances,Bad Payment History

FICO Bankcard 2: 604

FICO Score 3: 621

FICO Score 8: 699

Thinking about it, I do have a charge-off on my account that isn't on hers. I'm thinking that might be my "Serious Delinquency". It's only on EX so I haven't really pushed to do anything about it...

Re: Why such a difference between FICO Auto 2 and 8 ?

Slabenstein — Tue, 26 Jan 2021 17:32:13 GMT

It looks like you do have a similar spread between your classic EX8 & EX2, so the difference in your AU scores may be due to general differences between 98 & 8. I don't really know enough about FICO 98 or your profile to speculate as to what those might be. With regards to the reason codes on your report, both "many new accounts" (on EX AU2) and "short account history" (on EX AU8) look accurate from what you've disclosed. The reason code can show up if you're missing any points at all under that metric. I know from my own case that on EX2 industry options "many" new accounts means more than none (though I don't know for how long, I believe it's more than a year), so 2 would qualify, despite how they word the reason statement. On FICO 8, I think one thing "short account history" references is AAoA, and you're under the 7.5 year threshold that's believed to be the max for that metric.

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Tue, 26 Jan 2021 17:37:50 GMT

Based on the replies above my thought that an open auto loan may matter definitely isn't correct.

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Tue, 02 Feb 2021 23:04:22 GMT

@Anonymous Version 2 and version 8 deal with baddies very differently. Version 8 added two new dirty cards to add granularity. Version 8 treats recent baddies more harshly whereas version 2 seems to hold on to the pain a lot longer. my guess would be that your CO is over two years old and that’s one of the main reasons your version 2 is lower.

Next it appears you’re in a new account scorecard on version 2 but maybe not on version 8. That would account for a discrepancy. what’s the age of your youngest Revolver? If it’s over 12 months but not much older, that would account for the discrepancy as well.

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Wed, 03 Feb 2021 18:48:33 GMT

Interesting how much can change in just a few days (when your revolvers start showing new, much lower utilization

This was on 1/26

FICO Auto 2: 621

FICO Auto 8: 697

And now today

FICO Auto 2: 709

FICO Auto 8: 726

Only significant change between the days is knocking utilization from over 90% down to about 16%. Apparently FICO Auto 2 must look at utilization harsher than Auto 8

Re: Why such a difference between FICO Auto 2 and 8 ?

Anonymous — Wed, 03 Feb 2021 22:36:35 GMT

A utilization shift from 90% to 16% is likely to significantly impact scores on any Fico scoring model. That's taking the second most important piece of the Fico pie from a near-worst place to a near-ideal place.