My credit union pulled FICO 4!

[egaithe]

I recenttly took out a personal loan from my CU and they pulled the FICO 4! Why would they pull such an outdated product? Obviously, my score was lower. I think they do this to make money....Thoughts?

[JLK93]

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@egaithe wrote:

I recenttly took out a personal loan from my CU and they pulled the FICO 4! Why would they pull such an outdated product? Obviously, my score was lower. I think they do this to make money....Thoughts?

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Which Credit Bureau did they pull?

Most CUs, in my experience, like to keep things simple and use the same score for everything. So, most CUs use one of the Mortgage scores for everything.

[egaithe]

EQ, Fico 04

[myjourney]

Maybe they do more mortgages than anything so makes sense to stay with that model for all lending 

Maybe they get 04 at a good price passing the savings on to CU members .....IDK 

One thing for sure tho Fico 04 is one if not the longest scoring model used in history 

[RonM21]

Interesting. I've never thought about what if a lender pulled another version of Fico then Fico8 for the most part. Especially an older version.

[Anonymous]

Most car dealerships use FICO 4 in Ohio, if that means anything

[RobertEG]

If your staff understands a given version of FICO and it is serving your needs, why retrain on a new version?

Many are, for example, still using Windows 7........

[egaithe]

Yeah, but why an older model that has different algorithms or criteria which could impact their credit picture. I'm assuming older models have lower scores. Oh wait, to make more money......

[Anonymous]

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@egaithe wrote:

Yeah, but why an older model that has different algorithms or criteria which could impact their credit picture. I'm assuming older models have lower scores. Oh wait, to make more money......

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No, my FICO 4 is my highest it is over 700 TU, so actually I got the best money factor on a lease using 4

[Anonymous]

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@egaithe wrote:

Yeah, but why an older model that has different algorithms or criteria which could impact their credit picture. I'm assuming older models have lower scores. Oh wait, to make more money......

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The calculations in the older version may more closely approximate their own internal underwriting criteria. And older models can be higher, or lower. Just depends on profile.