Latest I have seen from FI on FICO 08

[MidnightVoice]

http://money.cnn.com/2008/02/08/markets/morningbuzz/index.htm

 Fair Isaac is in the process of rolling out a new credit score product, FICO 08, in May..........

And yet more to confuse the issue

Along those lines, Fair Isaac is also rolling out in May something that it calls a Credit Capacity Index. That will help banks determine how much additional debt a prospective borrower can handle.

[marty56]

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MidnightVoice wrote:

Along those lines, Fair Isaac is also rolling out in May something that it calls a Credit Capacity Index. That will help banks determine how much additional debt a prospective borrower can handle.

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I dont see how the FICO systems could calculate that unless they know how much money we make.

[Anonymous]

Yea I heard that on the news last night. Release 08 as soon as next fall. Do they mean fall of 2008 or fall of 2009? They didn't say this fall, they said next fall. Totally confused me.

I am going to take a guess at the Credit Capacity Index scoring. I would guess they determine how much your credit has been growing at a pace maybe? What you do when you receive CLIs and how fast you pay them back perhaps? Totally guessing.

[granny031350]

the CEO of Fico was on CNBC last week.    He talked about Fico 08 coming out "soon" and was taking some heat from the other responders on there about the mortgage crisis and that  FICO didn't predict who could/would pay and who wouldn't.  So my thought with the credit capacity score might be that those who have recently app'd for new credit would have a lower score?  In the past (I am 58) and this is back in the 70's obtaining a lot of new credit whether you used it or not was not seen in a positive light by lenders because the "capacity" for you to use it was there.  I am sure that other factors are taken into consideration like bill paying history etc but having a lot of cards was not viewed positively by lenders.  But back in the day we went to our local bank and sat down and talked to the officer in charge.  LOLOL  The internet wasn't even in the picture back then.  But I am wondering if the new capacity index won't be along those lines. 

[MidnightVoice]

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granny031350 wrote:

  But back in the day we went to our local bank and sat down and talked to the officer in charge. 

Ah, those were the days 

[Anonymous]

Yes, those were days when you went to your local bank and they spoke english.

[rom828]

Here we go again!  Just when I think I'm about to get it figured out!!  But I'm thankful for this forum as I'm learning all the time!!

And  I'm old school, too (50+) and definitely remember going to the bank & talking to my "banker" for car loans, etc.

And it certainly was the way 'granny' says....too much open credit put you in a bad light...quite the opposite of today.  If you were trying to get a home loan, or sometimes even a car loan, you'd be advised to 'close out those cards you're not using', the idea being that even if you didn't  owe on them at the time of the loan, you could start using them and be over extended.

I know now I actually hurt my score by closing accounts following the old way of doing things, before I found out to have a good fico score you have to have lots of open credit but not use any!!LOLOL

Sounds like this credit capacity score is going to be a throw back to the old way of thinking....at least in part.   But if it's a matter of how much you could  owe if you ran up all your open lines, your income would have to be taken into consideration and how would they know?!?!

[MidnightVoice]

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rom828 wrote:

Sounds like this credit capacity score is going to be a throw back to the old way of thinking....at least in part.   But if it's a matter of how much you could  owe if you ran up all your open lines, your income would have to be taken into consideration and how would they know?!?!

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That is what confuses me - it sounds like Util% plus income

Might not be for the general public - could be a calculation for lenders based on mortgage amount and age, age and amount of installments, util% and number of cards and income etc

[Junejer]

The difference between then and now, is then, there weren't credit scores. Now, there are. I can't wait to see what sort of flip-flops our scores will take after something like this hits. Also, lenders are going to be CONFUSED!