Fico score 9

[Anonymous]

Hi i have been working extremely hard to improve my credit.  My score has increased drastically.   My goal is to make into the 700+ club.  I'm almost there.  My issue is now, if the lenders start using FICO 9 then my score will decrease by 35 pts.   This isnt fair. How can they create newer versions of ways to judge our credit?  Whats the difference from fico 8 & 9?  The same info of mine  thats in 8 is in 9 so why the decrease in my score if they use version 9?  When will someone evaluate the credit system? It seems its working against Americans.  I've been on my job almost 20 years and would like buy a home for my family.  I have been working hard on my credit and its been over a year since I've had hard inquiries.  I have a 2 yr old collection I'm working to pay off. It seems the harder you work more  obstacles are put jn your way. 

[Anonymous]

FICO score 9 is supposed to be a more accurate representation of your credit health. They create new score versions as an update for outdated versions.

FICO score 9 does ignore paid collections, in contrast to FICO 8, so if you pay off your collections as you claim you'd most likely see a rise in score. I'd assume that it weighs collections more heavily than FICO 8 due to this.

[TaylorTaylor]

I know what you mean. My FICO 8 Experian score is 39 points higher than my FICO 9 Experian score. However, last month FICO 8 was 57 points higher than FICO 9. There wasn't much of a change between the two months on my credit reports, so I don't yet understand the FICO 9 score. I think overall my private student loans are what is making my FICO 9 scores so low.

[dragontears]

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@Anonymous wrote:

Hi i have been working extremely hard to improve my credit.  My score has increased drastically.   My goal is to make into the 700+ club.  I'm almost there.  My issue is now, if the lenders start using FICO 9 then my score will decrease by 35 pts.   This isnt fair. How can they create newer versions of ways to judge our credit?  Whats the difference from fico 8 & 9?  The same info of mine  thats in 8 is in 9 so why the decrease in my score if they use version 9?  When will someone evaluate the credit system? It seems its working against Americans.  I've been on my job almost 20 years and would like buy a home for my family.  I have been working hard on my credit and its been over a year since I've had hard inquiries.  I have a 2 yr old collection I'm working to pay off. It seems the harder you work more  obstacles are put jn your way. 

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Good news! Mortgages don't use FICO 9!

Bad news: mortgages don't use FICO 8!

If your goal is buying a house the only scores that matter are the older models (FICO 2,4 and 5). Unfortunately, many people have lower mortgage scores than their FICO 8 version. 

As for the "fairness" of making new score versions... well consumers are not the target end users of credit scores, banks are. The point of a credit score is to distill the risk of default into a number (based on the data in a credit file), if a model is developed that better predicts risk than it is attractive to lenders. 

[SouthJamaica]

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@Anonymous wrote:

Hi i have been working extremely hard to improve my credit.  My score has increased drastically.   My goal is to make into the 700+ club.  I'm almost there.  My issue is now, if the lenders start using FICO 9 then my score will decrease by 35 pts.   This isnt fair. How can they create newer versions of ways to judge our credit?  Whats the difference from fico 8 & 9?  The same info of mine  thats in 8 is in 9 so why the decrease in my score if they use version 9?  When will someone evaluate the credit system? It seems its working against Americans.  I've been on my job almost 20 years and would like buy a home for my family.  I have been working hard on my credit and its been over a year since I've had hard inquiries.  I have a 2 yr old collection I'm working to pay off. It seems the harder you work more  obstacles are put jn your way. 

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1. Neither FICO 8 nor FICO 9 is relevant to your mortgage scores. The only scores presently relevant to a mortgage application are EX FICO 2, TU FICO 4, and EQ FICO 5.

2. I don't see any evidence that "the harder you work more obstacles are put in your way" although I do see plenty of evidence that (a) hard work is not the factor our parents taught us that it was and (b) the wealthiest people in this country wouldn't know what hard work even looks like.

3. Possible differences between FICO 9 & FICO 8:
-paid collections not counted in 9
-unpaid collections given more weight in 9
-medical collections given less weight in 9
-rental history counted in 9
-recent inquiries given less weight in 9
-average age of accounts given less weight in 9
-no. of accts reporting balance given more weight in 9
-premium for open as opposed to closed installment loans reduced in 9
-installment loan utilization percentage given more weight in 9
-9 more sensitive to revolving utilization