topic Re: Who controls the Scoring?? in General Credit Topics

Who controls the Scoring??

Anonymous — Sat, 23 Apr 2011 01:09:46 GMT

Who is in charge of the scoring for the credit reports?! Is it the Credit Bureaus,or is it FICO??

Re: Who controls the Scoring??

llecs — Sat, 23 Apr 2011 01:31:49 GMT

I may butcher this, but FICO created the formulas (each CRA has their own) and the CRAs use it on license from FICO because they are the ones providing the data.

Re: Who controls the Scoring??

awal — Sat, 23 Apr 2011 19:19:00 GMT

If FICO created the formula for scoring, couldn't they theoretically create an EX score from EX data?

Re: Who controls the Scoring??

guydiver — Sat, 23 Apr 2011 19:33:27 GMT

uh-oh, here we go again. Read my siggy

Re: Who controls the Scoring??

cw81 — Sat, 23 Apr 2011 22:17:12 GMT

@awal wrote:
If FICO created the formula for scoring, couldn't they theoretically create an EX score from EX data?

They sill do but its not sold to the consumer on this site anymore. It is sold to lenders .

Re: Who controls the Scoring??

haulingthescoreup — Mon, 25 Apr 2011 04:50:27 GMT

The scores are joint products between FICO and each credit bureau, and both have to agree to sell them to consumers. Since EX took its marbles and went home, there's nothing FICO can do.

FICO created the formulas, but the actual generation of the scores are done at the credit bureaus when you pull. Even if FICO wanted to go renegade and start offering EX FICO's without Experian's cooperation...

* pauses to enjoy this scenario *

...it wouldn't work, because FICO doesn't have access to your Experian credit report.

Re: Who controls the Scoring??

llecs — Mon, 25 Apr 2011 12:47:44 GMT

@haulingthescoreup wrote:
* pauses to enjoy this scenario *

for dramatic effect?

Re: Who controls the Scoring??

guydiver — Mon, 25 Apr 2011 17:26:31 GMT

@haulingthescoreup wrote:
The scores are joint products between FICO and each credit bureau, and both have to agree to sell them to consumers. Since EX took its marbles and went home, there's nothing FICO can do.

FICO created the formulas, but the actual generation of the scores are done at the credit bureaus when you pull. Even if FICO wanted to go renegade and start offering EX FICO's without Experian's cooperation...

* pauses to enjoy this scenario *

...

@haulingthescoreup wrote:
The scores are joint products between FICO and each credit bureau, and both have to agree to sell them to consumers. Since EX took its marbles and went home, there's nothing FICO can do.

FICO created the formulas, but the actual generation of the scores are done at the credit bureaus when you pull. Even if FICO wanted to go renegade and start offering EX FICO's without Experian's cooperation...

* pauses to enjoy this scenario *

...it wouldn't work, because FICO doesn't have access to your Experian credit report..
No, but I have access to my Ex report, why can't I buy it and have Fico score it???

Re: Who controls the Scoring??

haulingthescoreup — Mon, 25 Apr 2011 20:39:35 GMT

@llecs wrote:
@haulingthescoreup wrote:
* pauses to enjoy this scenario *
for dramatic effect?

Nah, just the thought of FICO becoming a Zorro for the modern consumer.

Re: Who controls the Scoring??

haulingthescoreup — Mon, 25 Apr 2011 20:42:51 GMT

@guydiver wrote:

@haulingthescoreup wrote:
The scores are joint products between FICO and each credit bureau, and both have to agree to sell them to consumers. Since EX took its marbles and went home, there's nothing FICO can do.

FICO created the formulas, but the actual generation of the scores are done at the credit bureaus when you pull. Even if FICO wanted to go renegade and start offering EX FICO's without Experian's cooperation...

* pauses to enjoy this scenario *

...it wouldn't work, because FICO doesn't have access to your Experian credit report..

Interesting point. My guess is that again, the score is a joint product of the credit bureau(s) and FICO, and they split the proceeds, including when a lender pulls your scores, btw. Since Experian ended its agreement with FICO for consumer purchase of EX FICO's, FICO probably can't legally do this.

Since I am not an attorney (thank the Lord), this is pretty wild speculation on my part.

Re: Who controls the Scoring??

RobertEG — Tue, 26 Apr 2011 00:27:58 GMT

It is a somewhat complicated cross-licensing system.

FICO has the algorithms, and the CRAs have the data. They must, thus, feed on each other to complete the process of producing a FICO score.

Fair Isaac licenses the use of its algorithms to each CRA, and in return, recieves a fee for each CR the CRA produces from their algorithms. The CRA decides who they will sell the FICO scores to. FICO had a cross-licensing agreement to purchase scores back from the CRAs and then sell them on their consumer myFICO site.

Ex simply cancelled the second part of the process, deciding to no longer sell their product back to Fair Isaac. They must have determined that would make their FICO generated scores more profitable if they were only obtainable through their own clients, and not direclty to consumers through the myFICO consumer site.

Re: Who controls the Scoring??

haulingthescoreup — Tue, 26 Apr 2011 01:00:20 GMT

I have one thought bubble to offer, which I'm sure that no one will really want to accept.

WE control the scoring.

That is in the sense that scoring is done on our credit reports, and our credit reports are the summary of how we have handled our credit up to this point in time.

So in the end, the scores are a result of a FICO formula applied to the info on our CRA reports, and they occur in accordance with a legal agreement between FICO and the individual bureaus. But as long as our behavior influences what shows up on our reports, I will argue that we control the scoring.

* goes to hide under the dining room table *

But it is a very valid question as to how the scores come about in the first place.

eta: cna't splel