FICO score formula

Anonymous — Sun, 07 Dec 2008 06:42:21 GMT

What is the formula/algorithm used to compute FICO scores?

Re: FICO score formula

laz98 — Sun, 07 Dec 2008 07:22:39 GMT

i think if it was as simple as asking, no one would need to pull FICO scores anymore!

Re: FICO score formula

llecs — Sun, 07 Dec 2008 14:52:07 GMT

stanleykorn wrote:

What is the formula/algorithm used to compute FICO scores?

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=64959&view=by_date_ascending&page=1

Now obviously joking, but it is a proprietary formula. And very complex as it uses everyone's financial picture to calculate your score (e.g. buckets).

Re: FICO score formula

RobertEG — Wed, 10 Dec 2008 04:06:13 GMT

There are approximately 36 different flavors of the FICO scoring algorithm. There is no single algorithm.

FairIsaac explains it in their webinars and credit education posts as follows.

The basic FairIsaac scoring methodology is to break consumers down into approximately 12 different categories ("buckets"), and they develop separate algorithms for each. Major categories include those with short credit histories, those with only a minor delinquency (30-days), those with major delinqenquencies, public records, or bankruptcies, those with CO or CA accounts, with further breakdowns based on lenght of credit history and %util of exisiting accounts. Even the bucket categorie themselves are trade secrets, let alone how each is scored differently within each bucket.

Then this methodolgy is multiplied by three, in that FairIsaac also develops totally different tweakings of their scoring methodology for each of the CRAs who purchase their software.

It is mind boggling in complexity, and FairIsaac makes money from them, so they dont disclsoe them in any detail. That is why the score simulators provided by myFico stink to badly. If they were more detailed, it would allow reverse engineering of their methodology and algorithms, and that just aint gonna happen.

I hope this confuses you! It does me.

topic FICO score formula in Understanding FICO® Scoring

FICO score formula

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