FICO SCORING MODULE CHANGES?

Anonymous · ‎06-15-2007

Can anyone highlight this new FICO scoring module for me?

are the scores different?
is the criteria changing?

What is to be expected?

MidnightVoice · ‎06-15-2007

AUs go away

Subprime CCs, auto loans and mortgages bad

and, in terms of who and when,

Barry wrote:

Don't know yet and don't know if anyone knows yet. Ask me again in another month and I may know more.

Barry

He is the big cheese on the board

Message Edited by MidnightVoice on 06-15-2007 01:01 PM

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

Tuscani · ‎06-15-2007

MidnightVoice wrote:

AUs go away

Subprime CCs, auto loans and mortgages bad

and, in terms of who and when,

Barry wrote:

Don't know yet and don't know if anyone knows yet. Ask me again in another month and I may know more.

Barry

He is the big cheese on the board

Message Edited by MidnightVoice on 06-15-2007 01:01 PM

You sure about that?

MidnightVoice · ‎06-15-2007

Tuscani wrote:

MidnightVoice wrote:
AUs go away

Subprime CCs, auto loans and mortgages bad

and, in terms of who and when,

Barry wrote:

Don't know yet and don't know if anyone knows yet. Ask me again in another month and I may know more.

Barry

He is the big cheese on the board

Message Edited by MidnightVoice on 06-15-2007 01:01 PM
You sure about that?

When I last ran an MB, admins were the big cheeses

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

smallfry · ‎06-17-2007

We've all been told that it is not a good idea to close cards. I wonder if it might be beneficial to close any sub prime cards especially very new ones if they are not needed for utilization. I won't do it yet because we don't know which would be worse. Closing a new low limit card or having it report as active. Anyone care to venture a guess?

sl · ‎06-17-2007

I am wondering the same thing. I have a Orchard card with a credit line of $500. I keep wondering if that will hurt me. Also, my Cap1 was a CL of $1200. I think that one should be okay even through the interest rate is 19%

sl · ‎06-17-2007

I am wondering the same thing. I have a Orchard card with a credit line of $500. I keep wondering if that will hurt me. Also, my Cap1 was a CL of $1200. I think that one should be okay even through the interest rate is 19%

Anonymous · ‎06-17-2007

Now I don't know about the rest of you, but for them to consider subprime cards and loans as bad, I think it will be extremely difficult for people to rebuild their credit. Obviously people with lower scores will only be able to get subprime cards and loans but even if they pay them off and build history with those new cards, they will still be penalized just because those things are subprime. I'm not sure how much affect the sub-prime vs. prime thing will make but between that and taking away the AU, I sure am glad I've been working on my rebuilding process now so I won't have to then.

Anonymous · ‎06-17-2007

I think if FICO considers subprime cards to be negative, there's going to be a huge backlash...possibly enough to get the Feds to step in and more tightly regulate credit scoring. For many people with damaged credit, getting a sub-prime card is the only means they have to improve credit.

If you take that away, you're basically telling about thirty million people or so, "Tough toenails, your credit's hosed, there's nothing you can do about it, check back with us in seven years." That's enough people that if they start calling and writing and e-mailing their Congressional reps, there's going to be even more heat coming down on CRAs and Fair-Isaac, and I don't think they want that.

I could see counting mortgages a little less favorably than they are now. I don't understand how incurring a new $1500 a month bill makes you less likely to default. Giving people props for having a mortgage made some sense earlier in the decade when homes were magic cash machines that appreciated 6-10% a year, but those days are gone and not likely to return anytime soon, if ever. '

Logically, someone taking out an auto loan should take a minor to moderate hit to FICO, since they just incurred a significant new debt on a rapidly depreciating asset and have not (yet) established their ability to service and pay off this debt. As their payment history is established, the hit should reverse itself and become a minor positive. After the loan is paid off on time or ahead of schedule, the consumer should get a 10-15 point bonus, as he or she has shown they can fulfill an obligation over the long run.