Fico O8 in effect 06/01/08????

[MidnightVoice]

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ByrdMan wrote:

What was throwing me is the whatever version they have currently purchased part. TU has currently purchased Classic '04 (for about four years now, if my calculations are correct), yet we still get Classic '98 from myfico until over 50% of lenders use '04.

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Maybe one of the super-duper insiders could ask for an explanation? 

[Junejer]

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@MidnightVoice wrote:

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@Junejer wrote:

What was throwing me is the whatever version they have currently purchased part. TU has currently purchased Classic '04 (for about four years now, if my calculations are correct), yet we still get Classic '98 from myfico until over 50% of lenders use '04.

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Maybe one of the super-duper insiders could ask for an explanation? 

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The explanation is that we will get Classic '04 when there are more than 50% of lenders using this version. Soon, we will see Classic '04, as that number is at or above 50%.

[haulingthescoreup]

Well, if you think about it, what good would it do you to pull scores here using the up-to-the-minute score formula, if the chances are good that your lenders are still using the old one? The idea is to have at least a 50-50 chance that what you pull here will match what's being used out there.

If lenders are reluctant to switch to an updated version, for whatever reason, then they're going to be pulling the old scores anyway. It would be nice if the CRA's would chop the old formulas off after 2 years or something, but I suppose lenders get attached to familiar formulas, and as long as the CRA's can make money off of the old stuff, that's what they're going to do.

[Junejer]

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@haulingthescoreup wrote:
Well, if you think about it, what good would it do you to pull scores here using the up-to-the-minute score formula, if the chances are good that your lenders are still using the old one? The idea is to have at least a 50-50 chance that what you pull here will match what's being used out there.

If lenders are reluctant to switch to an updated version, for whatever reason, then they're going to be pulling the old scores anyway. It would be nice if the CRA's would chop the old formulas off after 2 years or something, but I suppose lenders get attached to familiar formulas, and as long as the CRA's can make money off of the old stuff, that's what they're going to do.

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HTSU, my guess is that the lenders don't want to pay the upgrade premium to go to Classic '04 that TU is trying to pass on (probably to help pay for the CA lawsuit to the tune of $75MM). LOL.

[RobertEG]

And one other point of clarification that I would ask from our FICO gurus....

Yeah, Classic FICO, NextGen Fico, Enhanced FICO, and the fantom FICO 08, not to mention the different versions that are separately marketed to each of the CRAs, etc., are all major versions of FICO products.  But my impression from listening to the FICO webinars is that FairIsaac rountinely, based on updated risk analyses, can change each of them monthly to realign to market and customer trends?

So dont we have, for example, FICO Classic v.1.1, 1.2, 1.3, ad infnitum,in constant flux?

[Anonymous]

Is it possible that this is why WAMU online (credit card) score is always different than the Classic FICO? Do they use the FICO '08 formula? Or maybe something else?

[haulingthescoreup]

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@Anonymous wrote:
Is it possible that this is why WAMU online (credit card) score is always different than the Classic FICO? Do they use the FICO '08 formula? Or maybe something else?

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No, they are publishing your credit-card-enhanced score. It works from the basic formula, whichever one they're using (98 or 04), but it gives more weight to items that predict credit card behavior, so it results in a different score.

They've had this score for a while, so it wouldn't be FICO 08. In fact, they're so cheap that they only use the previous month's score, so I doubt they'd pay for the new formula for this!

[Anonymous]

Tovya - the only place that any classic FICO's can be obtained for free is the TU FICO from Wamu if you have a home equity line with them.   This IS the classic FICO that you get from myFICO when you pay for it.

[Anonymous]

ah, excellent information. It is strange that my pFico isn't higher considering that it is the one part of my credit that is perfect. I have always paid on time and in full on my CC for the full 7 year history.

[Junejer]

Tovya, how much of your CL reports to the CRA each month? Though you pay in full, if you allow a high enough util % to report, it will affect you adversely, whether or not it's PIF on time every month.