Credit-scoring system is about to undergo change

[Barry]

While much has already been written about the upcoming authorized users changes to the FICO scoring formula, this article in the Star-Telegram sheds some additional light on propsed changes to the FICO "segments" (or pools) in the coming months:

http://www.star-telegram.com/408/story/168776.html

[MidnightVoice]

More buckets/pools/brackets/groups. 

certain groups will feel the effect far more than others.

People with thin credit history or poor credit will likely see their score either jump or drop significantly, he said.

As it goes with most change, some people are going to be hurt through no fault of their own.

[Anonymous]

They got the name of the FICO spokesman wrong -- it's Craig Watts, not Chris Watts.  What else did they get wrong??

[MidnightVoice]

And shouldn't this be in the "misunderstanding FICO scoring forum"? 

[Anonymous]

Going from 8 buckets to 12, should help the folks with Thin Files, but those with very bad histories could find themselves in worse shape than they are today... This is an important motivating factor for those in credit dis-repair to start focusing much time and energy on cleaning up their respective profiles... They'll need to get themselves out of the buckets they are in and really trying to fix what they have broken.

Rob

[Anonymous]

I also saw that the recomendation was made that spouses and family members currently listed as AUs move to Joint ownership of these accounts... I have seen this advice on the boards here as well, but I have to say it is NOT AN EASY PROPOSITION to convert long standing individual good accounts into joints... My wife and I have called all of our credit cards to address this, and so far NO GOOD... Nearly all of them said that they do not convert accounts to joint without having first taken into consideration the credit profile of the other, and in most cases they recomended opening new accounts, thus losing the Hx that boosts the FICO.

We have resolved to apply jointly at a couple of places, but at the end of the day we will be stuck waiting for the clock to tick and move us from one bucket to the next... Problem there is obvious - you get some score bumps in your existing bucket, Hx increases and your moved to a new bucket BUT YOU'RE AT THE BOTTOM OF THE NEW BUCKET!!!!!! Scores will swale and spike more often.

With more buckets, there will be more wide swings of the FICO pendulum with little or no justification.

Sorry for the long winded post... I could go on & on & on, etc.

Rob

[MidnightVoice]

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FICO_Focused wrote:

I also saw that the recomendation was made that spouses and family members currently listed as AUs move to Joint ownership of these accounts... I have seen this advice on the boards here as well, but I have to say it is NOT AN EASY PROPOSITION to convert long standing individual good accounts into joints... My wife and I have called all of our credit cards to address this, and so far NO GOOD... Nearly all of them said that they do not convert accounts to joint without having first taken into consideration the credit profile of the other, and in most cases they recomended opening new accounts, thus losing the Hx that boosts the FICO.

Rob

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I had no problem with Chase or my local Credit Union or the local store that we have cards with.  Two completed, one in process.

[Anonymous]

We went ahead and applied together at a credit union, a new car loan (to be paid off in three months) Amex told us to apply separately, we don't have Chase. BofA requested that the tradelines be older than a year. Fia said that the account numbers wouldn't change but the Hx would disappear! So we didn't do that one. HSBC would not convert, as they don't do joints, WAMU wouldn't either. Macy's, American Eagle Outfitters and Kay all did.

The others that we have are just a couple of months / weeks old... So we just started looking for prime lenders that will offer new accounts to joint applicants. Citi & Chase turned us down - to many INQs.

Rob

[fused]

Finally FI has confirmed buckets, pools or scorecards do in fact exist. I wonder if it's possible then to be swimming in three different pools, one for each CRA? Seems that I am currently in this situation.

TU:  A pool butterfly stroke

EQ: A- pool breast stroke

EX: B+pool but treading water like Midnight.

[MidnightVoice]

TU - in my own private hot tub with flatscreen TV

EQ - gentle sidestroke

EX - pool of molten excrement in the lowest pit in that hot place down below