FICO 08 and Charge-Offs

[Anonymous]

I recently read somewhere the the new FICO 08 scoring model will not penalize (decrease score) for paying charge-offs or collections. Is there any validity to this?

[GFer]

I've read that somewhere too, but didn't think much of it, as FICO 08 probably won't be used for some time (I've also read).

[Anonymous]

I sometimes worry that I am going to do everything that I know to do to get my scores up based on the current FICO and then as soon as I get them to where I would be able to buy a house they will switch to FICO 08 and my scores would drop and I would have to start all over... except this time no one will already know what to do and the whole process will take longer

[GFer]

I wouldn't stress it too much, as it doesn't look like they'll roll that out soon.

In reference to the validity of the op's---I honestly don't know the answer, but it seems only fair. As it stands, it doesn't seem fair nor does it give much incentitive to pay off bad debts only to be penalized for it!

(Course it would give me more reading and pass the time faster while I'm rebuilding!)

Message Edited by GFer on 10-31-2008 11:36 PM

[Anonymous]

My girlfriend had a meeting dealing with "the future of lending" and topics that were brought up were what model they are going to use for future lending and "if" they stay FICO or not.  It also was stated that their computer systems would not be FICO 08 compatible until late, late 09.  She said that there were direct talks with the CRA individually also.  The financial turmoil is taking its toll throughout the economic structure.