@Roper wrote:I completely understand they are two scoring models, but FICO04 vs FICO08 should not be so different for the same file if the changes implemented in FICO 08 (less weight on some lates, small collections don't count, authorized users etc) aren't present in the file being evaluated.
I bet the percentiles are not too different. 780+ on FICO 04 is very rare.
@Roper wrote:I completely understand they are two scoring models, but FICO04 vs FICO08 should not be so different for the same file if the changes implemented in FICO 08 (less weight on some lates, small collections don't count, authorized users etc) aren't present in the file being evaluated.
...why should they not be so different? ...the FICO 04 model is much older, considers different factors, and weights similar ones differently ...it was designed for mortgage lenders dealing with high value loans and the mortgage lenders have stuck with it because it apparently works for them
...the FICO 08 model is much newer, considers different factors, and weights similar ones differently ...it was designed with CC lenders dealing with lower value loans in mind
...you could hardly expect that the same CRA file data would receive exactly the same score from the two different score model algorithms
...the concensus here is that FICO 04 scores tend to run ~50 points lower than FICO 08 scores but it varies widely
...as an example, my own FICO 04 scores ran 30 points higher on EQ and 15/10 points lower on TU/EX with EX 743 being my mid score ...hth
@Anonymous-own-fico wrote:
@HiLine wrote:
780+ on FICO 04 is very rare.
The 780 of FICO 04 is at 75%, which seems like a reasonable percentile. I think FICO 08 is ridiculously inflated; all that's required for being in the 800s is no baddies and an non-excessive utilization. And yet the 780 of FICO 08 too is at 75%. Is FICO compensating for people doing worse?
You're right about the FICO 08 percentile.
Let's re-phrase your question to "Is FICO becoming more generous to people with clean histories?" and my answer will be a resounding yes.