topic Re: SubPrimers...Very Good News! in Understanding FICO® Scoring

SubPrimers...Very Good News!

fused — Mon, 09 Jul 2007 21:59:38 GMT

For the last several weeks it has been rumored consumers with subprime CCs reporting on their CRs will see their FICO scores plummet once FICO'S new and improved scoring model debuts this September. JUST IN, THIS IS NOT GOING TO HAPPEN! So what will the new FICO scoring model do? Simply put, a better job of predicting subprime and prime risk than earlier versions of FICO scoring models. That's it!

Re: SubPrimers...Very Good News!

Anonymous — Mon, 09 Jul 2007 22:12:02 GMT

I'm not at all surprised...retooling FICO to distinguish between prime and subprime would have opened up a big fat can of worms, not the least of which would be creating a legally defensible definition of "prime" and "sub-prime."

Re: SubPrimers...Very Good News!

fused — Mon, 09 Jul 2007 22:15:34 GMT

TheNewWorldMan wrote:
I'm not at all surprised...retooling FICO to distinguish between prime and subprime would have opened up a big fat can of worms, not the least of which would be creating a legally defensible definition of "prime" and "sub-prime."

Yes! I'm sure many at this forum are relieved.

Re: SubPrimers...Very Good News!

Anonymous — Mon, 09 Jul 2007 22:19:16 GMT

thanks fused!

i am happier than dogcrap to hear that, especially since the only cc accts that i have with any age to them are subprimes! yay.

Re: SubPrimers...Very Good News!

Tuscani — Tue, 10 Jul 2007 01:42:50 GMT

Yep.. I thought I was correct when I originally said FICO can't differentiate between the two. However, after watching the FICO animation several weeks ago I began to question myself. I am glad we got the straight answer though.

Re: SubPrimers...Very Good News!

smallfry — Tue, 10 Jul 2007 21:43:13 GMT

@fused111 wrote:

@Anonymous wrote:
I'm not at all surprised...retooling FICO to distinguish between prime and subprime would have opened up a big fat can of worms, not the least of which would be creating a legally defensible definition of "prime" and "sub-prime."
Yes! I'm sure many at this forum are relieved.

You can keep the Orchard card. LOL.

Re: SubPrimers...Very Good News!

Anonymous — Tue, 10 Jul 2007 21:47:25 GMT

orchard is my oldest card, i am not giving that one up for any damned thing

Re: SubPrimers...Very Good News!

smallfry — Tue, 10 Jul 2007 21:49:55 GMT

@Anonymous wrote:
orchard is my oldest card, i am not giving that one up for any damned thing

I was just teasing.

Re: SubPrimers...Very Good News!

Anonymous — Tue, 10 Jul 2007 21:51:56 GMT

@smallfry wrote:
I was just teasing.

Be careful who you tease. Dog is positively rabid about that Orchard card.

Re: SubPrimers...Very Good News!

fused — Tue, 10 Jul 2007 21:57:44 GMT

dog wrote:
orchard is my oldest card, i am not giving that one up for any damned thing

dog it will sure be nice when you receive your blue card, so you can whip it out and pay one of your power lunch tabs with your friends and cohorts w/o maxing it out! Steaks and cocktails for four with a $300 CL, not exactly priceless.

Message Edited by fused111 on 07-10-2007 11:57 AM

Re: SubPrimers...Very Good News!

SoulSmilen — Tue, 10 Jul 2007 22:47:07 GMT

fused111 wrote:

dog wrote:
orchard is my oldest card, i am not giving that one up for any damned thing

dog it will sure be nice when you receive your blue card, so you can whip it out and pay one of your power lunch tabs with your friends and cohorts w/o maxing it out! Steaks and cocktails for four with a $300 CL, not exactly priceless.

Message Edited by fused111 on 07-10-2007 11:57 AM

LOLOLLLLL

Re: SubPrimers...Very Good News!

MidnightVoice — Tue, 10 Jul 2007 23:21:56 GMT

fused111 wrote:
For the last several weeks it has been rumored consumers with subprime CCs reporting on their CRs will see their FICO scores plummet once FICO'S new and improved scoring model debuts this September. JUST IN, THIS IS NOT GOING TO HAPPEN! So what will the new FICO scoring model do? Simply put, a better job of predicting subprime and prime risk than earlier versions of FICO scoring models. That's it!

Do you have a link to this?

And I wonder if it is better at predicting subprime and prime risk due to the fact that it looks at if the CCs are subprime or prime?

Re: SubPrimers...Very Good News!

Anonymous — Wed, 11 Jul 2007 05:27:49 GMT

http://www.fairisaac.com/fic/en/news/press-releases/As+FICO+Score+Passes+100+Billion+Mark.htm

The company plans to begin delivering the new FICO® score innovations starting in September.

...

Fair Isaac's development tests indicate that the new Classic FICO® score research model increases predictive strength by 5-15 percent, with the largest increases coming in three important consumer segments:

Originations and new accounts
Borrowers who pose higher risk, often referred to as subprime borrowers
Borrowers with thin or young credit bureau files

I ain't buying the good news. I say the AU issue alone is going to drive down the FICO scores of millions, some seeing significant decreases, and many being husbands and wives who are already responsible for one another's debts.

I also predict the end result will be more subprimes.

Re: SubPrimers...Very Good News!

MidnightVoice — Wed, 11 Jul 2007 05:43:55 GMT

Noah_Bodie wrote:

I ain't buying the good news. I say the AU issue alone is going to drive down the FICO scores of millions, some seeing significant decreases, and many being husbands and wives who are already responsible for one another's debts.

Well, it will be good news for lenders, just not for consumers

Re: SubPrimers...Very Good News!

Anonymous — Wed, 11 Jul 2007 05:47:45 GMT

MidnightVoice wrote:

Well, it will be good news for lenders, just not for consumers

Doh, ya got me.

Re: SubPrimers...Very Good News!

fused — Wed, 11 Jul 2007 16:53:15 GMT

Noah_Bodie wrote:
http://www.fairisaac.com/fic/en/news/press-releases/As+FICO+Score+Passes+100+Billion+Mark.htm

The company plans to begin delivering the new FICO® score innovations starting in September.
...
Fair Isaac's development tests indicate that the new Classic FICO® score research model increases predictive strength by 5-15 percent, with the largest increases coming in three important consumer segments:
Originations and new accounts
Borrowers who pose higher risk, often referred to as subprime borrowers
Borrowers with thin or young credit bureau files
I ain't buying the good news. I say the AU issue alone is going to drive down the FICO scores of millions, some seeing significant decreases, and many being husbands and wives who are already responsible for one another's debts.

I also predict the end result will be more subprimes.

With regard to AUs, I am in total agreement with you. The good news applies to those who only qualify for sub-prime CCs. Their scores are not suppose to drop simply beacause they have sub-prime CC TLs on their CRs.

Re: SubPrimers...Very Good News!

Anonymous — Wed, 11 Jul 2007 17:33:15 GMT

The effect on actual loans may not be as great as the effect on scores. Knowledgeable mortgage lenders and auto lenders already disregard AU impact on scores. The scoring change will just make it less work for them to do what they are already doing.

Of course, I don't know what percentage of lenders would be considered knowledgeable and what percentage don't bother to read past the score on their copy of the CRs ...