Hi All,
Well I have been apping around and I have noticed that significant amount of banks have now changed to the fico 9 model in my state. I have applied for USAA (EXP Fico 9), BBVA ( EXP Fico 9), Wells Fargo (EXP Fico 9). I know BoFA still using fico 8 and so is AMEX. But when did BBVA change? I know it had to be super recent because in July I applied and was given a fico 8 score.
Also, now in the fico 9 score is it true all paid in full collections will no longer be calculated in the scoring? Is it almost the account doesn't exist?
In FICO 9 collections that are reported as paid are considered as if the terms have been met and will not hurt you any more. Consider this the benifit of being responsable.
The diffrence between FICO 8 and FICO 9 is actually not that big. Implementing the changes takes little time and smaller lenders actually are easier to update than larger ones. BBVA is small and is quite easy to update. USAA is a military lender and I have never heard of them not being willing to help their fellow troops. Since FICO 9 implements an algorithm that is more in your favor they pushed for its use. Wells Fargo is the odd one out because of their size but if you consider that they were faking services on accounts and then sending people to collections you can consider the change as a part of the restitution.
The real shocking change is how many banks are now smashing Experian. If you look closely all of the FICO 9 banks are using the same bureau.
If FICO 9 is rolling out, I'm going to be one happy camper.
@Thomas_Thumb wrote:I expect further movement by creditors to Fico 9 - not because it is a better predictive model.
The real reason is it provides motivation for those with outstanding obligations to pay up [reward and punishment approach]. That is a big difference (adding reward motivation). However, for those with a clean file and +800 scores, a slight drop in score with Fico 9 is not unusual.
BTW - What does "smashing Experian" mean?
I think he means that lenders have been more and more turning to Experian for underwriting.
Until the recent security issue Experian had a good reputation both for data accuracy and security (well compared to EQ / TU anyway) and over the last decade they have been aggressively marketing and even discounting pulls as I understand it from some people who were in the negotations with them at companies I worked with (not massive lenders admittedly but it was interesting to hear).
That said as I'm sure people know the CRA's were originally region based, and if we're talking West Coast applicant even for big banks it's more likely EX will get pulled over another. Personally I can mostly ignore both EQ and TU unless I go out of my way to get a pull from there or for something like a mortgage that hits all three.
Also to someone above: in my anecdotal experience it is easier for a smaller lender to switch because quite often they don't have the same level of analytics as the big banks ao they don't spend as much time looking over the data and trialing it potentially... though FICO 9 has been about average length in terms of adoption, but don't start ascribing meaning where there may not be: generally it's all about the benjamins when we're talking lenders both in better predictive model and reducing their UW costs (i.e. if they don't care about paid collections, a FICO 9 score can be level set and handle that more easily than FICO 8 which may not ignore a collection and there may need to be further review).
Lenders aren't out friends, period 
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