FICO Score Versions

[OptimalCS]

I understand that most mortgage lenders use:

FICO Risk Score, Classic 04 (TU),

Experian/Fair Isaac Risk Model V2 (EX) and  

BEACON 5.0 (EQ)

My question is what percentage of mortgage and credit card lenders actually use later versions of FICO such as FICO '07 & '08 ?

Does this mean that authorized user accounts are still factored in FICO scores for mortgage and credit card approvals if older versions are still being used?

[MarineVietVet]

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@Aim720 wrote:

I understand that most mortgage lenders use:

FICO Risk Score, Classic 04 (TU),

Experian/Fair Isaac Risk Model V2 (EX) and  

BEACON 5.0 (EQ)

My question is what percentage of mortgage and credit card lenders actually use later versions of FICO such as FICO '07 & '08 ?

Does this mean that authorized user accounts are still factored in FICO scores for mortgage and credit card approvals if older versions are still being used?

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I've never heard of FICO07 and I know of no lenders who have converted to FICO08 but that doesn't mean there aren't some out there.

AU's are allowed for credit cards accounts but I don't believe an AU has ever been allowed on mortgages but I could very well be mistaken about that.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[OptimalCS]

marinevietvet wrote:

I've never heard of FICO07 and I know of no lenders who have converted to FICO08 but that doesn't mean there aren't some out there.

FICO 07 was a version FICO introduced to exclude AU accounts but then recalled.

[MarineVietVet]

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@Aim720 wrote:

@MarineVietVet wrote:

I've never heard of FICO07 and I know of no lenders who have converted to FICO08 but that doesn't mean there aren't some out there.

FICO 07 was a version FICO introduced to exclude AU accounts but then recalled.

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I'm not saying you are wrong but I am unaware of a FICO07. Before FICO08 was launched there was talk of excluding AU's but that idea was never implemented.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[AndySoCal]

There is only the FICO08 score.  The AU accounts are still factored into the score but the impact  will not be as much if any. This is in response to the 'credit rental: scam. If you google this you will find more information. 

[vanillabean]

I was looking into the The Equal Credit Opportunity Act of 1974 and came across an article on Credit Repair and the End of Authorized User Accounts which mentions a model named FICO '07 (I don't know if it's so).

ECOA provides that a creditor that furnishes information to credit bureaus must report account information for both spouses on joint credit accounts and on accounts where a spouse is an authorized user.

That doesn't of course limit other authorized users to be reported, and since credit reports don't indicate the existence of a spousal relationship between authorized user and account holder, what's a score report to do?

But "We [Fair Isaac] have developed technology that will reduce any impact on the FICO 08 score from intentional tampering, while allowing the scores of spouses and other genuine authorized users to benefit from their shared credit experience."

No one really knows how. But I have noticed my Experian report's mortgage says "Joint with [DW]", so I suppose (no relation to Fair Isaac, just me guessing) you can find a correlation of credit card accounts in the credit reports of the two individuals and consider the finding to be reason for whether an AU is legitimate.

[smc733]

So the Discover I'm an AU on (my dad's), wouldn't stop working if someone pulled TU'08.

It mentions nothing about my being an AU, despite being 8 years old and I'm 19.

Also, what about the Amex gold I'm being added to, which is from 1981 (10 years before I was born)?

[AndySoCal]

The Amex card would depending on which lender and how the lender pulls the credit report could create an alert. If the lender pulls your credit report with the one of the fraud alert features it would trigger an alert.  Almost any card you are being added to would trigger an alert. One of the alerts is Credit extablished before the age of 18. The other alert would be credit extablished before  date of birth or some wording to that effect.  Most likely with FICO 08 you would receive some benefit for those accounts. I would suggest a possibilty that you look in to a secured credit credit. you can get one with $300.00 is the starting level. This would report as your account to the credit bureaus. It is something to consider and would assist you in extablishing your own credit.

[smc733]

Hi andy,

I already had established credit before I added the 3 AU cards.  (See the two cards in the Sig, they're mine), and I was around a 690.  These gave me an awesome benefit well into superprime land, so I was curious to see what the bad points would be.

I guess if they help, great.  If not, oh well.

[AndySoCal]

Sorry I missed that point about those two cards.   Besides the potential alerts they might create I do not see any down side. FICO score model likes a long payment history. With the two cards you already have use them and allow time to work for you in regards to your score.