FICO 8 - More consumer friendly?

[ADARPegasus]

yep thats what i was told that authorized users are counted exactly the same its up to the bank that reports the cards to report Authorized Users but FICO using everything on the credit so authorized user account is that same as a individual or joint account.

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@llecs wrote:

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@pizzadude wrote:

Thanks for posting the link to the article !  The main point on piggybacking that I read is FICO 08 restricts piggybacking to only the card holder's family.

So it sounds like AU accounts which don't belong to a relative are not going to be factored into your score.

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FICO was aiming for that, but completely backed away. AUs factor into any FICO08 versions just equally as if you were the account owner, regardless of affiliation to that owner. IIRC, they were worried about the Equal Credit Opportunity Act and they interpreted the law as it was illegal to restrict AU access. VantageScore and other FAKOs block AUs from scoring though.

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[boomhower]

I don't get why they just don't set a transition date and eveyone moves to the new formula.  It's rediculous that there are three different TU FiCOS in use.  If a company wants to use there own scoring formula that's fine, but if it's a FICO score then it should be all the same.(well one of three, one for each CRA).  It would make it simpler on everyone involved.

[Anonymous]

What about medical collections of $100?

I have a number of those because of a large hospital visit during 2009. They're all listed as spearate accounts with the same collection agency too. My insurance and the hospital were going back and forth and when all was finally paid, they said I was responsible for a $100 co-pay

So I wonder if it's $99 and under, or $100 and under.

The joy of this whole credit report and scoring process is that the powers that be have made it as clear as mud for the little guy to understand.

[CS800]

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@Anonymous wrote:

What about medical collections of $100?

I have a number of those because of a large hospital visit during 2009. They're all listed as spearate accounts with the same collection agency too. My insurance and the hospital were going back and forth and when all was finally paid, they said I was responsible for a $100 co-pay

So I wonder if it's $99 and under, or $100 and under.

The joy of this whole credit report and scoring process is that the powers that be have made it as clear as mud for the little guy to understand.

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What I give to you is an example that I had with Discover since they use Beacon 9.0 (FICO 08).

My EQ with them was about 35 points higher than myfico. The only conclusion I came to was that my PIF collection for $80 didn't weigh that much under FICO08.

[CS800]

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@boomhower wrote:

I don't get why they just don't set a transition date and eveyone moves to the new formula.  It's rediculous that there are three different TU FiCOS in use.  If a company wants to use there own scoring formula that's fine, but if it's a FICO score then it should be all the same.(well one of three, one for each CRA).  It would make it simpler on everyone involved.

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It's a money game; that why you see Plus Score/Vantage. They all want to get a piece of the pie from the credit game. It would be too easy to have one system. Even EX has stopped seeling their socre to the common mortals. If you go on their website you get a plusscore (useless).

YOu make total sense and this has been echoed by most of us on here but until there are established regulations to protect the consumers, this won't change.

[llecs]

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@boomhower wrote:

I don't get why they just don't set a transition date and eveyone moves to the new formula.  It's rediculous that there are three different TU FiCOS in use.  If a company wants to use there own scoring formula that's fine, but if it's a FICO score then it should be all the same.(well one of three, one for each CRA).  It would make it simpler on everyone involved.

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Look at FICO scores like cars. Some of us like the classics and some of us prefer something modern. Like with cars, FICO is the same way. There are some lenders who find that the older score works better for them with regards to risk than the newer ones. And some prefer the newer to the older. They'll take a sampling of data of past loans and run it through the new model to see if that score version would have better predicted the risk than the one they have currently. Since the demographic varies from region to region as do their economies, there is never a one-size-fits-all scenario and that's why you'll see different versions used.

[GregB]

A business is lending the money. They get to choose if the borrower is qualified based upon their criteria. They used to do this through a complex system of references, credit history, and having to manually check with other lenders. The FICO system started as a simpler way to determine basic credit qualification. It may be the only criteria for very simple loans such as a low limit store card. It is only the first hurdle in a long process for more complex loans such as a home.

It is extremely rare that any individual has a good grasp on how the lender actually sees them as a credit risk. A borrower that thinks they know how the system should work makes about as much sense as having an election by asking each candidate if they think they are the one that should have the position.

[GregB]

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@CS800 wrote:

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@Anonymous wrote:

What about medical collections of $100?

I have a number of those because of a large hospital visit during 2009. They're all listed as spearate accounts with the same collection agency too. My insurance and the hospital were going back and forth and when all was finally paid, they said I was responsible for a $100 co-pay

So I wonder if it's $99 and under, or $100 and under.

The joy of this whole credit report and scoring process is that the powers that be have made it as clear as mud for the little guy to understand.

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What I give to you is an example that I had with Discover since they use Beacon 9.0 (FICO 08).

My EQ with them was about 35 points higher than myfico. The only conclusion I came to was that my PIF collection for $80 didn't weigh that much under FICO08.

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For both of you:

The specific language is "Small amount collection and public record items (under $100) are no longer evaluated."

My customer has upgraded to Beacon 09 but I haven't seen enough credit apps to have a better opinion if results match their marketing.