Fico 9 is a total mystery to me. I've seen several here that remark their Fico 9 scores are in line or higher than 8, but that is not the case with me at all. With the exception of TU, mine are all 30-40 points lower on version 9 than version 8. I can only surmise that it places more emphasis on certain baddies than 8 does. My TU is a just little lower than 8 and its the only report where I have all my baddies gone.
I would be interested in others take on this scoring method too.
@dynamicvb wrote:Fico 9 is a total mystery to me. I've seen several here that remark their Fico 9 scores are in line or higher than 8, but that is not the case with me at all. With the exception of TU, mine are all 30-40 points lower on version 9 than version 8. I can only surmise that it places more emphasis on certain baddies than 8 does. My TU is a just little lower than 8 and its the only report where I have all my baddies gone.
I would be interested in others take on this scoring method too.
It wouldn't be higher for you based on the derogatories, it would be lower. It does score you higher than fico 8 once the derogatories are paid.
When you have baddies, that is the major ceiling on your scores.
At its root, the reason FICO and other scores exist, is to measure of risk, risk that the borrower may not pay back the loan. As soon as loan or CC terms are violated by paying late, that significantly raises the risk to lenders that the borrower will fail to pay. Score is panalized.
If FICO 9 factors in that a debt was ultimately paid to zero, that allows the person to pay off the debt without going through the chore of getting the late itself deleted. While this improves FICO 9, the older algorithms are still very much affected by the late if it is not deleted.
Once you get all the lates handled, either paid or PFD, then you will see a score improvement. After that, factors like utilization become more important.
At its root, the reason FICO and other scores exist, is to measure of risk, risk that the borrower may not pay back the loan. As soon as loan or CC terms are violated by paying late, that significantly raises the risk to lenders that the borrower will fail to pay. Score is panalized.
If FICO 9 factors in that a debt was ultimately paid to zero, that allows the person to pay off the debt without going through the chore of getting the late itself deleted. While this improves FICO 9, the older algorithms are still very much affected by the late if it is not deleted.
Once you get all the lates handled, either paid or PFD, then you will see a score improvement. After that, factors like utilization become more important.
@Brian_Earl_Spilner wrote:It wouldn't be higher for you based on the derogatories, it would be lower. It does score you higher than fico 8 once the derogatories are paid.
Not necessarily. My TU is clean and its 6 points lower than my TU Fico 8. Version 9 does not follow the exact same rules as 8 and it must count newer accounts or inquiries more heavily as those the only potentially negative items on that CRA.
Well the things you can control in the short term are the same for all models:
Don’t app / open new accounts unless there is a good financial reason.
Keep utilization low or work to pay down balances, especially on any high utilization cards.
Continue to pay all accounts on time every month.
Look for opportunities to get SP CLI on cards where those are available.
And, as you are already doing, try to resolve baddies off your file.
Don’t app / open new accounts unless there is a good financial reason.
Keep utilization low or work to pay down balances, especially on any high utilization cards.
Continue to pay all accounts on time every month.
Look for opportunities to get SP CLI on cards where those are available.
And, as you are already doing, try to resolve baddies off your file.