New Fico Scoring System for 2008

[CreditBob]

Hi everyone, I just sent our moderator an email in regards to the new changes in the fico scoring system in 2008. According to antional news the chnages will take place by march 2008. It is supposed to give a more accurate picture of how a consumer is what kind of a credit risk. More accurate than today's scoring system. Does anyone have any comments or information on this?

[haulingthescoreup]

There are posts all over this place about this. Some of the most current are over on the Credit in the News forum --might want to check that out!

[MidnightVoice]

The latest word on the street os EX is trying it out but not yet using it, TU will probably do so later on in 08, and EQ is waiting until its lawsuit with FI is resolved.

[CreditBob]

NO, this time the credit bureaus are not part of the topic. Specifically Fair Isaac aka myfico is the only one making the new changes.

[MidnightVoice]

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CreditBob wrote:

NO, this time the credit bureaus are not part of the topic. Specifically Fair Isaac aka myfico is the only one making the new changes.

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Now I am confused.  FI can make as many changes as it likes, but if the CRAs don't use them, I don't see what difference it makes to FICO scores

[haulingthescoreup]

The CRA's commission FICO to create their scoring formulas. That's why scores tend to be a bit different from one another, as each bureau has some elements that it values more than others.

It was the CRA's and the creditors who are their customers who felt the need for a major revision that would address the AU issue and others, and that is where the impetus came from. FICO is the collection of math wonks and statisticians and researchers that historical data on borrower behavior, and then try to write formulas that predict our future behavior.

[MidnightVoice]

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haulingthescoreup wrote:
The CRA's commission FICO to create their scoring formulas. That's why scores tend to be a bit different from one another, as each bureau has some elements that it values more than others.

It was the CRA's and the creditors who are their customers who felt the need for a major revision that would address the AU issue and others, and that is where the impetus came from. FICO is the collection of math wonks and statisticians and researchers that historical data on borrower behavior, and then try to write formulas that predict our future behavior.

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So why is it nothing to do with the CRAs?  I am totally confused now

Message Edited by MidnightVoice on 12-20-2007 08:30 PM

[haulingthescoreup]

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@MidnightVoice wrote:

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@haulingthescoreup wrote:
The CRA's commission FICO to create their scoring formulas. That's why scores tend to be a bit different from one another, as each bureau has some elements that it values more than others.

It was the CRA's and the creditors who are their customers who felt the need for a major revision that would address the AU issue and others, and that is where the impetus came from. FICO is the collection of math wonks and statisticians and researchers that historical data on borrower behavior, and then try to write formulas that predict our future behavior.

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So why is it nothing to do with the CRAs? I am totally confused now

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No, I was agreeing with YOU! Don't get me confused, too!

CRA's and creditors wanted the changes. FICO answered their requests. (That being their job, and all.)

[MidnightVoice]

The quote function is very useful 

So I assume it is Confused about math Bob spreading untruths again?  I will leave it to the Mod Squad to sort him out 

[fused]

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haulingthescoreup wrote:

CRA's and creditors wanted the changes. FICO answered their requests. (That being their job, and all.)

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I don't think the CRAs want to change anything. If ain't broken don't fix it. As for Bob's comments, well, I dunno what he's trying to convey.