New fico score model

[Rebuilding69]

I was denied a CC a week ago due to a paid medical PR from 2-3 years ago. Fico 9 where are youuuuuuuuuu. I've got 5 years until this thing falls off. Please let Fico 9 be used commonly before then!

[Thomas_Thumb]

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@Anonymous wrote:
I keep hearing rumors that the new fico score model is supposed to be out last month but didn't see anything about it. I also notice that the fico add Fico XD but I thought the fico score supposed to add fico 9 too. Any update or rumors about the new scoring model?

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I think Fico's push is to roll out Fico XD which "scores the unscoreable". My guess is the tactic is aimed at cutting the legs out from under VantageScore 3.0 which has been touted as reaching a broader cross section than current Fico models. Here is an exerpt from a recent  article and a link.

Between 35% to 50% of credit-card applicants who are now scorable have an XD score higher than 620, a minimum threshold that some credit-card issuers require for approval. The XD score runs from 300 to 850, the same range as traditional FICO scores, and a 620 on the XD scale equals a traditional FICO score of 620, says Jim Wehmann, executive vice president of scores at FICO.

Borrowers with an XD score who receive a credit card and pay their bills on time for at least six months will then receive regular FICO scores, making it easier to get other types of loans including mortgages.

FICO’s score has been developed in partnership with credit-reporting firm Equifax Inc. EFX -0.03% and LexisNexis Risk Solutions, which provides risk-related data to lenders. The two companies are providing the alternative data needed to crunch the new score. Here are a couple links:

http://blogs.wsj.com/moneybeat/2015/10/08/new-fico-score-may-have-wider-impact-than-first-thought/

  http://blogs.creditcards.com/2015/10/new-fico-score-xd-promises-to-score-the-unscorable.php

[Thomas_Thumb]

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@Anonymous wrote:
I keep hearing rumors that the new fico score model is supposed to be out last month but didn't see anything about it. I also notice that the fico add Fico XD but I thought the fico score supposed to add fico 9 too. Any update or rumors about the new scoring model?

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Fico XD is still in test phase but there is a push to roll it out. It provides scoring capability for a wider cross section of the population. In part, it is a response to VantageScore 3.0 which is touted for its ability to score more people than Fico 8.

Pasted below is are a couple exerpts from a slide share and an article along with a associated links.

SCORES FICO® Score XD © 2015 Fair Isaac Corporation. All rights reserved. 2 Instead, in its development of FICO® Score XD, FICO researched and found alternative data sources that provide reliable insights into these consumers’ financial health. Using positive and negative data from The National Consumer Telecom and Utilities Exchange® , Inc. (NCTUE® ), and public record information from LexisNexis® Risk Solutions, FICO® Score XD gives bankcard issuers the ability to reliably assess risk on more than half of the credit applicants who do not receive a traditional FICO® Score.

Designed for Precision, Regulatory Compliance, and Easy Integration As with any FICO model development, FICO® Score XD was designed to address all key considerations and necessities of bankcard issuers including predictive precision, compliance requirements and operational efficiency. Precise Risk Assessment: FICO® Score XD leverages the same modeling technology as the traditional FICO® Score, and replicates advancements made in the characteristic design of FICO® Score 9 for accurate alignment with today’s consumer marketplace.

The score is based on comprehensive data sets from NCTUE, managed by Equifax — including new connect requests, payment history, current and historical account status (call record data is not included) — and LexisNexis Risk Solutions — including property ownership records, frequency of residential moves and evictions, plus bankruptcies and liens.

http://www.slideshare.net/FICO/fico-score-xd

FICO XD: A Credit Score To Help The Invisible

FICO has been working on a solution to this problem. Next year, FICO is expected to roll out FICO XD, a new scoring model targeting credit invisibles. FICO has partnered with 12 banks to test the model, and the early performance looks promising.

FICO has partnered with Equifax and Lexis Nexis Risk Solutions to gain access to more consumer data than just credit accounts. In particular, FICO has gained access to a database established by utility companies and mobile phone companies which captures payment history. Using this data, FICO has generated a score that is based upon the same scale as traditional credit scores. It ranges from 300 – 850. A score above 700 is considered a very good score, and above 750 is excellent.

The FICO XD score will only be used for borrowers who not have a traditional FICO score. If you use a FICO XD to qualify for a credit product, you would likely graduate to a traditional FICO after six months of behavior. In particular, the score will reward people with proven, on-time payment history with their utilities and cell phones. In addition, the score will reward people who have stability in their residential history.

http://www.magnifymoney.com/blog/building-credit/everything-need-know-fico-xd-credit-score562727233

[Revelate]

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@Anonymous wrote:

Hi Jamie.  Yep, FICO 9 (standard) was released a year ago.  The industry-specific flavors (Auto, Bankcard) were released about six months ago:

http://www.fico.com/en/newsroom/industry-versions-of-fico-score-9-now-available-to-lenders-from-all-three-major-us-credit-bureaus-05-07-2015

I'd be surprised if no one is using it, if that means not a single license has been purchased for FICO 9.  I am guessing lots of FICO 9 scores are being run, if only as part of big lenders reviewing it internally against their other options.  And then a few smaller lenders or providers of credit assessment might well be using it -- very few no doubt but there well might be some (given the many thousands of lenders and creditors in the world).

Our OP was talking about a new FICO model that was not yet released but might be soon.  Hopefully he'll tell us more which one he was thinking of.

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Odds are people are field trialing it, and likely there are some smaller early adopters.  Most of the major players will take their time... one small lender I worked at switched from FICO Risk Model v2 to FICO 8 overnight on effectively the whim of the CEO so it can happen.

They also did that fairly recently, many years after FICO 8 was released, so I wouldn't get my hopes up based on that alone .