Edit: I was informed there was a discussion created for this that started earlier today before this thread in the Credit News section of these forums. Here is a link: https://ficoforums.myfico.com/t5/Credit-in-the-News/FICO-Changes-Could-Lower-Your-Credit-Score/td-p/...
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Hi everyone. I did a search in the forums and didn't see any posts about FICO 10. I just read this article which touches on some of the coming changes.
https://www.cnbc.com/2020/01/23/fico-10-credit-score-changes.html
Key quotes:
"Fair Isaac Corp., the company behind the popular FICO credit score, announced the launch of its latest FICO 10 model today, Jan. 23, that will start incorporating consumers’ debt levels into their scoring model."
"FICO estimates that about 110 million consumers will see a change to their score under the new credit score model, with most people seeing less than a 20 point swing in either direction. Roughly 40 million will see a shift upward over 20 points and another 40 million will see a shift downward, FICO says."
"“Those consumers with recent delinquency or high utilization are likely going to see a downward shift and depending on the severity and recency of the delinquency it could be significant,” Dave Shellenberger, FICO vice president of product management, said in a statement."
"The new scoring model will also likely create a wider gap between those who are considered good credit risks and those who are not. Consumers who already have good credit, for example, and who continue to whittle down their already existing loans and make on-time payments will see higher scores. But those who score below 600 will see bigger dips in their scores under the new model."
