IDK i'm reading alot of credit news from different sources saying that the major change in the fico08 system is taking effect now and the benefits of the AU are just about over. If not over already.
A fico score is meant to show a single person creditworthiness and not for a group to share...
I can post some links but i'm always open to a counter-point of view...
@Anonymous wrote:
IDK i'm reading alot of credit news from different sources saying that the major change in the fico08 system is taking effect now and the benefits of the AU are just about over. If not over already.
A fico score is meant to show a single person creditworthiness and not for a group to share...
I can post some links but i'm always open to a counter-point of view...
FICO 08 is out there for all 3 CRAs and has been so going on 2 yrs now (I think TU was first). But lenders really haven't adopted this yet. They are still scoring using versions for 98 and 04 for TU and 05 (Beacon 5.0) for EQ. I don't expect widespead use for years out, especially since this economy is unpredictable and lenders are skiddish about implementing something new.
Nonetheless, FICO 08 counts AUs. They (and lenders) wanted to dump AUs due to piggybacking and high rates of default among piggybackers, but FICO's legal gurus read into some obscure law somewhere (ECOA?) that it was illegal to prevent AUs for spouses and immediate family members. I think they figured out a way to prevent John Schmoo in WA from being an AU on Joe Bag-O Donuts' account out of NYC, based on address, name, etc. I have no clue. That rumor exists. But FICO backed away from ending AU scoring all together.
BTW, FICO, on their website somewhere (I have no idea where I saw it) has a recorded webinar with various lenders on this topic and the discussion as to why the thought process and specifically why they backed off. Other scoring systems, like Vantage, already omit AUs as part of scoring.