Real FICO score

[Anonymous]

Great info; I was not aware of the two different scores that's not really fair eh.

Also, an idea on the impact a recent 30day past due may have on the TU'98 and TU'04 classic scores; in terms of points of course.

[StartinOver]

I also read that the auto-enhanced scoring model keeps track of all your auto loans that might no longer be on your credit report, so they can judge how you use credit when it comes to cars, alone.

[llecs]

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@StartinOver wrote:

I also read that the auto-enhanced scoring model keeps track of all your auto loans that might no longer be on your credit report, so they can judge how you use credit when it comes to cars, alone.

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I haven't heard of that, and is especially not the case for an auto-enhanced FICO score, but this score will give greater weight to what auto-related credit is already reporting on your CR(s) over all other TLs.

[TangMeister]

Regarding the TU FICO score offered here on myfico.com:  Is this still the Classic '98 version?  And if so, when will the TU FICO '04 version that most lenders undoubtedly now pull, be offered on myfico.com? I read in the past that the threshold for offering a newer version is, to paraphrase, "when more than 50% of the credit market begins utilizing the next FICO version for a given CRA, we update myfico.com to that version for the CRA (only TU or EQ now)" or something similar.  Thanks! 

[smallfry]

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@TangMeister wrote:

Regarding the TU FICO score offered here on myfico.com:  Is this still the Classic '98 version?  And if so, when will the TU FICO '04 version that most lenders undoubtedly now pull, be offered on myfico.com? I read in the past that the threshold for offering a newer version is, to paraphrase, "when more than 50% of the credit market begins utilizing the next FICO version for a given CRA, we update myfico.com to that version for the CRA (only TU or EQ now)" or something similar.  Thanks! 

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Still the old score for TU. Can it be considered a FACO at this point?

[Anonymous]

Good point smallfry,  if we are not seeing the current version maybe it should.  But, since this was an original model, even though it is an older model, it is still considered a fico.

[TangMeister]

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@smallfry wrote:

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@TangMeister wrote:

Regarding the TU FICO score offered here on myfico.com:  Is this still the Classic '98 version?  And if so, when will the TU FICO '04 version that most lenders undoubtedly now pull, be offered on myfico.com? I read in the past that the threshold for offering a newer version is, to paraphrase, "when more than 50% of the credit market begins utilizing the next FICO version for a given CRA, we update myfico.com to that version for the CRA (only TU or EQ now)" or something similar.  Thanks! 

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Still the old score for TU. Can it be considered a FACO at this point?

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Yep, I'd call it a FACO at this point...a very expensive FACO.  Heck, it's 2 versions back!  I love the myfico.com website and appreciate the value it potentially offers consumers.  I steer people this direction on a fairly regular basis, so they'll get an industry standard credit score, and some good info along with it. 

Having said that, I'm  beginning to tell people to not purchase the TU FICO score, because I feel it's basically obsolete.  That leaves them with just EQ...which is sort of sad.  

I went back and dug up a quote that I remembered regarding this TU FICO issue on a consumer credit blog.  Back in Jan, 2009, Barry Paperno, a Fair Isaac Consumer Operations Manager, was quoted as saying (here's a snippet from the blog):

"myFICO and TransUnion do plan to tap the '04 model for scores provided to consumers, and for the reason you indicated," Barry Paperno, consumer operations manager for Fair Isaac, told me. "We expect that transition to take place soon."

My hopes were up when I read that and...well...almost 15 months later they're not up so much.  What happened?  I'd like to see "soon" happen "much sooner" please!  Incidentally, if anyone would like the link to that comment, I'll be happy to provide it...just message me.  I won't post a link out of respect for the forum.

C'mon Fair Isaac and TU...give us the TU '04 FICO version, already! 

[llecs]

Let me throw this out to anyone: If your mortgage lender pulled TU98 (and many still use it), would you still consider TU98 a FAKO score? Conversely, if myFICO sold TU04 scores, would you consider what myFICO sells as a FAKO if your lender did pull TU98? Finally, thinking ahead, if myFICO leaped ahead and offered TU08 scores and if your lender pulled TU04, would myFICO's TU08 also be considered a FAKO?

It's all in relation to "what", right? If your lender pulled TU04, you can easily go to another lender that still uses TU98 and get the scores to match up. And yes, a majority do use TU04, but some heavy hitters still use TU98, or at least as reported in Mortgage Loans.

[smallfry]

FACO might be a little strong but come on flip the switch already. How about an option to buy all 3 if you wanted. It's about the bling and I am sure they would sell more if they offered more. TU wouldn't mind either.

[Anonymous]

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@llecs wrote:

Let me throw this out to anyone: If your mortgage lender pulled TU98 (and many still use it), would you still consider TU98 a FAKO score? Conversely, if myFICO sold TU04 scores, would you consider what myFICO sells as a FAKO if your lender did pull TU98? Finally, thinking ahead, if myFICO leaped ahead and offered TU08 scores and if your lender pulled TU04, would myFICO's TU08 also be considered a FAKO?

It's all in relation to "what", right? If your lender pulled TU04, you can easily go to another lender that still uses TU98 and get the scores to match up. And yes, a majority do use TU04, but some heavy hitters still use TU98, or at least as reported in Mortgage Loans.

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At the very least, the TU'98 product needs to be replaced with a TU'04 product ASAP. First, because more lenders use TU'04. Second, because TU'04 produces a lower score more often than TU'98 does. When applying for a mortgage, people get far more upset if their score is lower than expected, than if it's higher than expected. If you can't give people a perfect product, then give them the product that causes the least amount of aggravation.

Of course, the simple, obvious solution is to offer a 2-version score product for TU and furnish customers with both TU'98 and TU'04 scores. At least then, people would not be surprised like they are now. It would still only require a single report to be pulled, and just process the data through both scoring formulas. I can understand that Fico may not have anticipated that things would evolve in this fashion, with a 60/40 or 70/30 or 80/20 split between TU'04 and TU'98 usage by mortgage lenders, but since that's the reality, they need to deal with it, and they should have dealt with it long ago. People can live with not needing to know the exact scores an auto lender or CC company looks at, but mortgage loan approval is a much bigger deal, and something that Fico's reputation is historically tied to.

If some lenders and resellers are still using TU'98, it's partially because Fico does not give them a good enough risk-based argument or a good enough financial incentive to change. Microsoft regularly strongarms its customers into upgrading their operating system or Office suite - Fico needs to try to copy them in this respect. And if they can't, scoring model usage will get more and more splintered, Fico will become less regarded as the "real" credit score, and competitors will make more inroads. With the paranoia induced by the housing market and the economy, mortgage lenders are already putting more weight on DTI, type of employment, and other isolated factors, which slightly weakens the importance of the credit score itself. If Fico can't persuade mortgage lenders to agree on one model, and those lenders seem content to use different Fico models that vary by 30+ points, it will make it more and more difficult for Fico to gain acceptance of any "new and improved" models in the future.

TU'04 seemed to have overtaken TU'98 a couple of years ago, and Fico's ongoing inaction (with occasional vague "coming soon" promises that never happen) can only make us assume there are other issues preventing this change, issues which Fico feels must be kept secret. And the fact that TU only offers TU'98 themselves adds to the mystery ...