topic Re: Fico 08 in General Credit Topics

Fico 08

Anonymous — Wed, 14 Oct 2009 01:39:08 GMT

I was browsing the changes in Fico 08 and I noticed that missing payments less than 100 dollars will not effect scores, and also missing payments more than 2 years ago if your file is otherwise unblemished does not effect it either.

My wife has a Utility account that she "missed" a $50 payment for 3 years ago. She did not actually miss it, it is a long story but the entire thing is a mistake that we cant seem to get corrected on the report. Basically, utilities were covered in her apartment, she moved out, paid the apartment complex everything they said was due, and apparently they were short. The utility company then came after the 50 dollars 1 year later which she paid. Thing is, she never set up an account with the utility company, it was all through the apartment. And the apartment is even verifying that she paid all that was due. Anyway, It is still negatively impacting her score. Her equifax is at 650. She has 2 credit cards with 0 balances always paid on time, she is authorized user on my cards which have 0 balances. She has a utilization of 0% and total revolving credit limit (including my limits) of around 100,000. She has one past car loan paid in full. No mortgage accounts. I cant see how her score would be that low with only a 50 dollar missed payment 3 years ago, that Fico 08 is supposed to be ignoring. Any ideas why the new scoring model is not working as proposed?

Thanks

Re: Fico 08

Jazzzy — Wed, 14 Oct 2009 01:47:09 GMT

Do you know that the score you are looking at is a Fico 08?

Has she tried a goodwill delete letter with the utility company?

Re: Fico 08

fused — Wed, 14 Oct 2009 01:50:10 GMT

Very few creditors are using FICO08, and the scores that you pull at this site are not FICO08. This explains why you haven't seen the changes you expected.

Re: Fico 08

Anonymous — Wed, 14 Oct 2009 01:50:33 GMT

Yeah we tried a letter. Everytime we get one in return that says per company policy that don't make any changes to credit bureau information.

I don't KNOW that it is a Fico 08, but I can assume. Didnt equifax go to 08 in July 09?

Re: Fico 08

Anonymous — Wed, 14 Oct 2009 01:51:01 GMT

I pulled it directly from equifax though.

Re: Fico 08

AndySoCal — Wed, 14 Oct 2009 04:41:15 GMT

FICO 08 is not avialible to the consumer yet. Can you post a link a link where you were reading this ? Equifax has released the FICO 08 score it is called Beacon 09. It is not widley used yet by lenders because of the nations largest lenders have not announced that they will accept this score model to underwrite with, Plus, all three bureaus do not have this model of the score released yet.

Message Edited by AndySoCal on 10-13-2009 09:41 PM

Re: Fico 08

Anonymous — Wed, 14 Oct 2009 17:13:14 GMT

http://www.creditcards.com/credit-card-news/help/fico-08-formula-affect-consumer-credit-score-6000.php

That is the link. And here is the specific text I was referring to.

"Equifax, one of the three major U.S. credit bureaus, said the FICO 08 changes are reflected in its BEACON 09 credit scoring product, which was released in June 2009. That makes Equifax the second national credit reporting agency to offer FICO 08 scores. TransUnion made a similar announcement on January 29."

I pulled her credit directly from Equifax. So it should be the new Fico 08 model, no?

Re: Fico 08

llecs — Wed, 14 Oct 2009 17:34:42 GMT

While FICO 08 has been released (also released for EX this summer), the scoring version of the FICO score sold by myFICO and Equifax.com is older than FICO08 (Beacon 9.0 to be precise). Only a teeny tiny minority of lenders are using the Beacon 9.0 version. It would be premature for myFICO and Equifax to offer FICO08 if lenders aren't even using it. A vast majority of lenders still use the same EQ score as found on here and Equifax.

Re: Fico 08

Anonymous — Wed, 14 Oct 2009 17:39:21 GMT

Gotcha. So can we assume since they are adopting the model, that lenders will begin to use it over the next few months/year?

Re: Fico 08

llecs — Wed, 14 Oct 2009 19:00:22 GMT

Hawnted wrote:
Gotcha. So can we assume since they are adopting the model, that lenders will begin to use it over the next few months/year?

Yep...it'll be more like years. As an example, TU98 (created in 1998) is the version of TU FICO offered by many lenders, myFICO.com, and transunioncs.com (ironically, the only places you can get a TU FICO score). Within the past year or two, a majority of lenders are now pulling TU 04. So it took about 3 yrs for a majority to adopt TU04. We can only guess, but FICO08 would be mostly used within 3-4 years, just in time for a new version to be released down the road.

Re: Fico 08

Anonymous — Wed, 14 Oct 2009 19:17:58 GMT

Great so just in time for this utility bill mix up to drop off the report, the new scoring model will be used! Outstanding. The irony...

Message Edited by Hawnted on 10-14-2009 02:17 PM

Re: Fico 08

llecs — Wed, 14 Oct 2009 19:35:47 GMT

LOL!

Re: Fico 08

XAVIERSMAMA — Thu, 15 Oct 2009 17:30:02 GMT

I don't think the missed payment is what's affecting your wife's score. Based on the info in the post the credit mix is limited with not open installment or mortgage accounts, and what is the AAofA? Also FICO doesn't respond well to 0% util. That doesn't show you "managing credit", it shows you not using credit. You need a CC util of 1-9% for the best util score. Just let one of your cards report a balance on the statement ending date and then pay it off right after to avoid paying interest. Hope this helps.

Message Edited by XAVIERSMAMA on 10-15-2009 10:30 AM

Re: Fico 08

Anonymous — Thu, 15 Oct 2009 17:37:52 GMT

We do leave balances sometimes to show usage. But this month its 0%. We have tried it both ways. Never seems to matter. Maybe 2-3 pts difference. We even tried having a 5% utility for a few months straight and it didnt help. Her average age is 4 years. And then she is an authorized user on 3 of my cards that I have been a cardholder since 2002 on each. When it breaks down the FICO score it says Recent missed payment as the only negative. And the reason it is recent, is because she paid it when they told her to. It was a few years old, but her paying it made it newer. We are still working to get it off, because it is actually a big mistake.

As far as the mortgage and installment thing. We own both our cars outright. The next car we buy we plan to put in her name on the loan. So hopefully that will help. The mortgage, I got before we were married, so its just in my name.

Re: Fico 08

Anonymous — Fri, 16 Oct 2009 13:18:48 GMT

This really isn't a FICO08 matter - it is a credit reporting issue.

What is the exact nature of every derog reporting on her account?

Re: Fico 08

Anonymous — Fri, 16 Oct 2009 13:24:03 GMT

Thats the only bad thing she has on her report. It is classified as a Paid Charge Off.

Re: Fico 08

Anonymous — Fri, 16 Oct 2009 13:29:23 GMT

A CO is a major derog (baddie) and not a simple, isolated 30-day late. It would be severely effecting her FICO score under any scoring model. Since you state that she never had an account with this entity I would use every tool at my disposal to have the TL removed up to and included legal action.

Re: Fico 08

Anonymous — Fri, 16 Oct 2009 13:34:17 GMT

It happened when she was living in an apartment in a city for 6 months during a medical residency. She left, about 2 years later we got married I checked her credit (she had never checked it before) and we found it. No attempts were ever made to contact her. We have contacted the apt complex, and have verified with them she paid all her bills and got them to send us a letter. We attached that letter and sent it to this company that is reporting she was late. That didnt work. They still claim they will not fix it. They say they use the information from the apt to start the account, and this account was late. I am not sure how else to get it removed.

Re: Fico 08

Anonymous — Fri, 16 Oct 2009 13:41:07 GMT

Either send them an ITS letter or go to an attorney an get him/her to do it. You definitely want this off!

Re: Fico 08

Anonymous — Fri, 16 Oct 2009 13:45:15 GMT

ITS?