topic Re: Why show Fico 8 scores at all in General Credit Topics

Why show Fico 8 scores at all

Anonymous — Fri, 20 Oct 2017 22:14:36 GMT

I recently subscribed to MyFICO 3b and it's great at updating my Fico 8, but you look at the scores used for just about every type of credit, from mortgages and auto loans to credit cards and personal loans, and nobody -- yet nobody -- is using Fico 8 to base lending decisions. Why, then, is that the default score for the MyFICO subscription?

Re: Why show Fico 8 scores at all

Anonymous — Fri, 20 Oct 2017 22:17:45 GMT

According to FICO, it's the most widely used model currently.

Re: Why show Fico 8 scores at all

K-in-Boston — Fri, 20 Oct 2017 22:19:26 GMT

Welcome to the forums. FICO 08 scores are far and away the most widely used scoring models. Some industries (such as auto loans) will tend to use enhanced scores, and some mortgages use different older scores because they are required to by federal law. But I'd say that 90+% of my lending decisions over the past few years have used FICO 08 models.

Re: Why show Fico 8 scores at all

Anonymous — Fri, 20 Oct 2017 22:26:44 GMT

Good question and good answers. I learned something new today. Dv

Re: Why show Fico 8 scores at all

Poppa — Fri, 20 Oct 2017 22:49:34 GMT

Does the Utimate 3B really update your Fico 8 scores whenever you have a balance change on a credit card?

Re: Why show Fico 8 scores at all

Gidgetmom — Fri, 20 Oct 2017 22:57:15 GMT

@Poppa wrote:
Does the Utimate 3B really update your Fico 8 scores whenever you have a balance change on a credit card?

Only the Fico 8 scores will change with certain activity on your report. The rest of the scores and simulator will operate from last full 3 bureau report that was pulled. At least that's been my experience.

Re: Why show Fico 8 scores at all

Poppa — Fri, 20 Oct 2017 23:12:24 GMT

Any card balance change will update the score though? I am really considering getting it if any balance change gets me an updated score. Correct me please if I'm wrong.

Re: Why show Fico 8 scores at all

Anonymous — Fri, 20 Oct 2017 23:27:07 GMT

@Poppa wrote:
Does the Utimate 3B really update your Fico 8 scores whenever you have a balance change on a credit card?

Depends on what you mean. Suppose your curent balance on your Chase Freedom is $20. Then you go to Denny's for dinner and your balance changes to $36. Although the balance on the card has changed, that won't cause any score to update, because that balance change hasn't appeared on your report.

If last month's reported balance to TU was $20, however, and then 30 days later Chase reports it as $36, that change will cause the FICO 8 Classic score to update.

Note that it is only the FICO 8 Classic that updates like that. The FICO 8 Bankcard Enhanced does not do that, nor does the FICO 8 Auto Enhanced.

Many people use free or ultra-low cost tools for their FICO 8 scores, and thus avoid paying $360 a year for the MF service. Others like paying for it. No single right choice.

Re: Why show Fico 8 scores at all

Anonymous — Sat, 21 Oct 2017 03:30:36 GMT

@Anonymous wrote:
I recently subscribed to MyFICO 3b and it's great at updating my Fico 8, but you look at the scores used for just about every type of credit, from mortgages and auto loans to credit cards and personal loans, and nobody -- yet nobody -- is using Fico 8 to base lending decisions. Why, then, is that the default score for the MyFICO subscription?

There are plenty of creditors that use FICO 08. Amex uses EX FICO 08 to monitor your credit score and make decisions regarding your credit limit, APR, etc. Discover uses TU FICO 08. These are just 2 common ones that come to mind. There are plenty of others. It's a bit outrageous to say that "nobody" uses that scoring model when as stated earlier it is the most commonly used model at this time.

Re: Why show Fico 8 scores at all

Anonymous — Sat, 21 Oct 2017 12:51:46 GMT

Thanks everyone. I just know that if I go to get a mortgage or car loan my FICO is going to be 40 points or more lower than the FICO 8. Good to know that some firms are using FICO 8. I just haven't run across any of them. If I had known a couple months ago that so many lenders don't use FICO 8, I could have saved some embarrassment of going to a lender and saying, "Oh yeah, my FICO is so and so" only for them to come back and say, "No, you're FICO is actually a lot lower than what you told us."

Re: Why show Fico 8 scores at all

Anonymous — Sat, 21 Oct 2017 13:07:28 GMT

@Anonymous wrote:
Thanks everyone. I just know that if I go to get a mortgage or car loan my FICO is going to be 40 points or more lower than the FICO 8. Good to know that some firms are using FICO 8. I just haven't run across any of them. If I had known a couple months ago that so many lenders don't use FICO 8, I could have saved some embarrassment of going to a lender and saying, "Oh yeah, my FICO is so and so" only for them to come back and say, "No, you're FICO is actually a lot lower than what you told us."

Perhaps BBS will chime in and explain further. He does a really good job and explaining why your score could be different from what the lender sees. You have hit on one such reason, which is the model could be different.

But even if you know in advance the exact model that was being used, there is also the particular bureau on which the data are being drawn on, You may have seen a FICO score drawn on Experian data, but perhaps the lender is pulling your score based on Equifax data.

And even if you know the exact model and the bureau the lender would use, there's the question of time. If you pull your score today and then a week later go car shopping, your score could have changed a lot in those 7 days. Derogs could have appeared (or gone away), reported CC balances could have changed, loans could have been paid off, etc.

Model, bureau, time -- any one of those three could cause your score to change by 100 points, or even more.

Re: Why show Fico 8 scores at all

Anonymous — Sat, 21 Oct 2017 13:13:13 GMT

@Anonymous wrote:
Thanks everyone. I just know that if I go to get a mortgage or car loan my FICO is going to be 40 points or more lower than the FICO 8. Good to know that some firms are using FICO 8. I just haven't run across any of them. If I had known a couple months ago that so many lenders don't use FICO 8, I could have saved some embarrassment of going to a lender and saying, "Oh yeah, my FICO is so and so" only for them to come back and say, "No, you're FICO is actually a lot lower than what you told us."

You are right that no mortgage lender uses FICO 8, though some people have higher mortgage score than they have FICO 8 scores.

But quite a few auto lenders use FICO 8 Classic rather than FICO 8 Auto. CarMax is one, I believe.

And FICO 8 Classic is common for personal loans and by CC issuers (though the latter sometimes use FICO 8 Bankcard).