Equifax Fico 04 Score vs. Fico 08 Score

[mato01]

My Equifax Fico 04 score is about 50 points lower than my Equifax  Fico 08 score. What are the some of the typical reasons for Fico 04 scores being lower than Fico 08 scores?

[-NewGuy-]

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@mato01 wrote:

My Equifax Fico 04 score is about 50 points lower than my Equifax  Fico 08 score. What are the some of the typical reasons for Fico 04 scores being lower than Fico 08 scores?

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FICO 08 discounts collections under $100, so that could be a reason if you have one of those. FICO 08 discounts the use of AUs in many cases as well.

[vanillabean]

It would appear that aging derogatories matter less under FICO 08, while installment loans count more.

[Anonymous]

Mine is just the opposite, EQ FICO 04 is 30-50 pts higher than my FICO 08 scores. Possible reasons?

[Anonymous]

Newer baddies. No installment loans. The list is endless. IMO fico 04 looks at the whole 7 year credit snapcahot weighted a lot more evenly than 08. Recent bads hit way harder on 08 and matter much less after they age.

[mato01]

Does that mean that charge offs falling off your report will multiple 30, 60, 90+ lates, will have a greater positive impact on your Fico 04 score than your Fico 8 score?

[MarineVietVet]

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@mato01 wrote:

Does that mean that charge offs falling off your report will multiple 30, 60, 90+ lates, will have a greater positive impact on your Fico 04 score than your Fico 8 score?

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I'm not sure if anyone can acuurately predict such a thing because we all have different credit profiles and they are constantly changing.

And because none us have access to the exact formulas used to calculate 04, 08, or any other scoring model.

[CreditDunce]

I posted this in another recent thread...

"FICO has modified their scoring formula to provide a better way of analyzing risk, which will help lenders to predict
the likelihood of a borrower defaulting on a loan. FICO ‘08 is predicted to help lenders reduce their default rates on
consumer loans between 5 to 15%. Here are the key differences between FICO ‘08 and other FICO models:

• FICO ‘08 is more forgiving of consumers with a couple late payments, but harder on those who are repeat offenders

• More weight will be given to consumers with a variety of credit types

• Increased protection for lenders from authorized user abuse while still recognizing legitimate authorized user accounts

• Consumers who use a high percentage of their available credit will be penalized to a greater extent"

It was from an old PR article FICO put out to help sell FICO 08 scores.   There are certainly other differences between the FICO 04 and FICO 08, but the above are the major reasons for differences in your score.

[Roper]

My Fico08 is 840 and Fico04 is 786 so a 54(!) point difference. This is ridiculous and makes no sense.

Clean file, zero lates or derogs, 11 years AAoA, less than 7% utilization, mix of credit and oldest revolving account is 24 years aged

[HiLine]

Why? These are 2 different scoring models. You probably have the same percentile anyway. 786 on FICO 04 is about as rare as 840 on FICO 08.