cancel
Showing results for 
Search instead for 
Did you mean: 

FICO 10/10T Changes Could Lower Your Credit Score

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Highlighted
Senior Contributor

Re: FICO Changes Could Lower Your Credit Score

Very interesting.










(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated DEC'19.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 31 of 118
Highlighted
Super Contributor

Re: FICO Changes Could Lower Your Credit Score


@iced wrote:

@GApeachy wrote:

@CassieCard wrote:

"FICO for the first time will place more weight on personal loans in a way that penalizes some borrowers. For example, consumers who transfer credit-card debt to a personal loan but continue to rack up credit-card balances will likely experience a bigger drop in their credit scores."

 

@greg_the_egg's post has the most important paragraph, I think. (Different from the one above.)

 

So the 'T' in 'FICO 10 T' is for 'Trended Data'.


Like vacation?  

“FICO 10T will incorporate trended data, which basically means that they’re going to try to smooth out the peaks and valleys,” Rossman says. “A temporary spending spike such as a vacation or holiday shopping won’t hurt your credit score as much if you generally keep your credit utilization low.”


That's how I read it too. The system sounds like it's being designed to punish those who leverage their already-leveraged debt by living from low-interest BT/loan to low-interest BT/loan, continually shifting debt around without ever really reducing their actual debt load.


Yep. Death of the BT shuffle game. 



01/2019:
02/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 32 of 118
Highlighted
Regular Contributor

Re: FICO Changes Could Lower Your Credit Score


@sjrn wrote:

I love how myFICO peeps are on top of this "breaking news."

 

 


lol. the wsj story was on my mobile notifications and my first thought was to come to myfico. i clicked through to the story, but headed here when i couldn't read the full article bc i don't have a wsj membership. 

Message 33 of 118
Highlighted
Senior Contributor

Re: FICO Changes Could Lower Your Credit Score

Yeah me either I would’ve liked to of read that.










(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated DEC'19.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 34 of 118
Highlighted
Moderator Emeritus

Re: FICO Changes Could Lower Your Credit Score


@gdale6 wrote:

Really irrelevant for myself 780, 800 is the same, besides by the time the industry adopts this model odds are I will not be here. The industry is still largely using Fico 4 and 8, have not even moved to Fico 9 yet.


You will have "good company" Smiley Happy

Message 35 of 118
Highlighted
Established Contributor

Re: FICO Changes Could Lower Your Credit Score

Here's an example of 'trended data' (what FICO 10 T is using) from my full TransUnion report obtained last year in March (2019). I only had 3 months of revolving credit history at that time. I can't wait to see what 1 year and 3 months of history looks like this March (2020).

 

If you have a card from a credit union which uses PSCU for payment processing, as over 800 of them do, you might see this sort of trended data on your full annual report from TU.

 

It clearly shows how early/late in the grace period I make a payment, if I paid it in full, and utilization month by month since the credit limit is tracked monthly as well. Something else interesting is that my 'High Balance' on this CU Mastercard is the highest balance ever recorded at any time, not just the highest reported monthly statement balance.

 

Trended data being reported by payment processor to TransUnion.Trended data being reported by payment processor to TransUnion.

27 FICO Scores + 3 VS3. MTG (Mortgage), AUT (Auto), and BKC (Bankcard) are scores 5,4, and 2 from the top.

Testing aggregate utilization greater than 8.99% but less than 9.00%. It's treated the same as 9.00%.

Message 36 of 118
Highlighted
Valued Contributor

Re: FICO Changes Could Lower Your Credit Score

Honestly, it looks like a way to make credit only beneficial to those with means. Those in lower income brackets with debt who are simply trying to pay it off the least expensive way possible will be punished. 

 

And it's not even about shoppoing debt, but unforeseen expences due to medical or unexpected job loss etc. Not everyone has deep pockets for those emergencies. So now, even though they're trying to be responsible and pay it back. They'll suffer from lower scores further preventing better interest rates or possibly being able to rent.






Message 37 of 118
Highlighted
Senior Contributor

Re: FICO Changes Could Lower Your Credit Score

If we’re going to take all that into account then they should also factor in financial decisions made to save interest.










(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated DEC'19.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 38 of 118
Highlighted
Moderator Emeritus

Re: FICO Changes Could Lower Your Credit Score


@Janus wrote:

Honestly, it looks like a way to make credit only beneficial to those with means. Those in lower income brackets with debt who are simply trying to pay it off the least expensive way possible will be punished. 

 

And it's not even about shoppoing debt, but unforeseen expences due to medical or unexpected job loss etc. Not everyone has deep pockets for those emergencies. So now, even though they're trying to be responsible and pay it back. They'll suffer from lower scores further preventing better interest rates or possibly being able to rent.


I'm crankly apparently today for which I apologize, but I don't understand what you're getting at.

 

If the debt is being paid off regardless of how expensive or cheap it is to be carrying that debt, the overall debt obligation will be going down and the new algorithm presumably rewards that.  If it spikes up one month and then starts trending down, that's a positive and iit's even suggested in the articles... responsible use of credit, yay.

 

Also that rent thing is not correct, landlords (the several I've talked to) have always looked for defaulted debt anyway.

 

I just don't see the issue.  If you're paying your bills you win, and if you're not, just like every other credit scoring algorithm in existence you get marked down for it.  Most likely it won't be passed onto the consumers anytime soon but trended data should make for better predictions which should lower the risk to the banks and that should result in reduced loss.  Long term that's a good thing for the economy.

 




        
Message 39 of 118
Highlighted
Senior Contributor

Re: FICO Changes Could Lower Your Credit Score

I think it’s the penalizing people for personal loans thing. I wonder how that’s gonna work.










(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated DEC'19.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 40 of 118
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.