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Why such a difference between FICO Auto 2 and 8 ?

LazarusLong
Contributor

Why such a difference between FICO Auto 2 and 8 ?

So according to Experian, my Auto 2 score is 612 and Auto 8 score is 693.

 

Why such a huge difference between them?  Especially considering that we've had perfect auto financing over 30 years - never ever had a late payment, etc.

 

Anyone know what they changed between the 2 different models?

AAoA = 6.8 yrs
AoOA = 22.6 yrs
Message 1 of 13
12 REPLIES 12
Overmedicated
Community Leader
Valued Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?


@LazarusLong wrote:

So according to Experian, my Auto 2 score is 612 and Auto 8 score is 693.

 

Why such a huge difference between them?  Especially considering that we've had perfect auto financing over 30 years - never ever had a late payment, etc.

 

Anyone know what they changed between the 2 different models?


Take a look at the reasons under each score.  I notice on mine that E8 is 13 points higher than E2.  I also note that they have different reasons codes for each model which are very different from each other as factors that lower my score.

 

My main 2 factors are:

E8

-You opened a new credit account relatively recently

-Remaining balance on installment/mortgage loans is too high

 

E2

-You've made heavy use of your available revolving credit(this is BS)

-You have a consumer finance account on your credit reports

 

The car loans that you've had in the past, who were they through?  Without knowing more about your profile, you could have many CFAs.

 FICO 8
Message 2 of 13
BrutalBodyShots
Super Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?

Good advice above regarding using the negative reason statements to determine why the variance is so large.

 

I have a 20 point variance between my EX Auto 2 and Auto 8 scores, 8 being the higher one. 

 

Do either of you have an open auto loan currently?  I don't.  I have multiple closed auto loans, but no open ones.  I wonder if EX Auto 2 likes to see an open auto loan. 

Message 3 of 13
Overmedicated
Community Leader
Valued Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?


@BrutalBodyShots wrote:

Good advice above regarding using the negative reason statements to determine why the variance is so large.

 

I have a 20 point variance between my EX Auto 2 and Auto 8 scores, 8 being the higher one. 

 

Do either of you have an open auto loan currently?  I don't.  I have multiple closed auto loans, but no open ones.  I wonder if EX Auto 2 likes to see an open auto loan. 


I have 1 closed auto loan and an open personal loan.

 FICO 8
Message 4 of 13
Slabenstein
Established Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?

OP, how do your classic EX8 and EX2 compare? Whether you do or don't see a similar difference might indicate whether the gap between your AU scores is due to a difference in those algos specifically or something broader in FICO 98 vs FICO8.


Message 5 of 13
BrutalBodyShots
Super Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?


@Overmedicated wrote:


I have 1 closed auto loan and an open personal loan.


Good info.  So you and I are the same in that neither of us have an open auto loan, but we have at least 1 closed auto loan on your CR.  Both of our F8A scores are 13-20 points higher than our F2A scores.  I'm not saying the lack of an open auto loan has to be the reason, but it's something worth looking at.

 

I'd like to hear from someone that has an open auto loan on their CR and how those 2 scores compare for them.  OP, do you have an open auto loan? 

Message 6 of 13
tooleman694
Valued Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?

I have 2 open auto loans and several closed ones.

 

EX Auto 2 = 658

EX Auto 8 = 669

 

The score are not too far off from my Fico 8 672 and my Fico mortgage 659.

Message 7 of 13
LazarusLong
Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?


@BrutalBodyShots wrote:

@Overmedicated wrote:


I have 1 closed auto loan and an open personal loan.


Good info.  So you and I are the same in that neither of us have an open auto loan, but we have at least 1 closed auto loan on your CR.  Both of our F8A scores are 13-20 points higher than our F2A scores.  I'm not saying the lack of an open auto loan has to be the reason, but it's something worth looking at.

 

I'd like to hear from someone that has an open auto loan on their CR and how those 2 scores compare for them.  OP, do you have an open auto loan? 


So here are some more details of what I have:

 

Open auto loan with Cap One (about 18 months old)

Had prior auto loans with Flagship Credit Acceptance and Mazda American Credit (even older loans than that but no longer showing)

 

We also have an open installment loan (non collateral) with a local bank that is about 2 years old (3 more years to go).

 

FICO Score 2: 609

FICO Auto 2:  621 - dinged for Serious Delinquency, High Credit Usage,Many New Accounts,Bad Payment History

FICO Auto 8: 697 - dinged for Serious Delinquency,High Credit Usage,Loan Balances,Short Account History

FICO Bankcard 2: 604

FICO Score 3: 621

FICO Score 8: 689

 

Just goes to show how much the numbers can vary.  Also some of the "reasons" are BS.  Many new accounts?  OK in the last year a credit card account and installment loan (RV).  Short account history?  I can only assume they mean installment accounts since AAoA = 6.8 yrs and AoOA = 22.6 yrs

 

Now my spouse who has a very similar credit profile has significantly better Auto scores:

 

FICO Score 2: 668

FICO Auto 2:  707 - dinged for Negative Items,High Credit Usage,Bad Payment History,High Account Balances

FICO Auto 8: 724 - dinged for Collection And/Or PR,High Credit Usage,Loan Balances,Bad Payment History

FICO Bankcard 2: 604

FICO Score 3: 621

FICO Score 8: 699

 

Thinking about it, I do have a charge-off on my account that isn't on hers.  I'm thinking that might be my "Serious Delinquency".  It's only on EX so I haven't really pushed to do anything about it...

 

AAoA = 6.8 yrs
AoOA = 22.6 yrs
Message 8 of 13
Slabenstein
Established Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?

It looks like you do have a similar spread between your classic EX8 & EX2, so the difference in your AU scores may be due to general differences between 98 & 8.  I don't really know enough about FICO 98 or your profile to speculate as to what those might be.  With regards to the reason codes on your report, both "many new accounts" (on EX AU2) and "short account history" (on EX AU8) look accurate from what you've disclosed.  The reason code can show up if you're missing any points at all under that metric.  I know from my own case that on EX2 industry options "many" new accounts means more than none (though I don't know for how long, I believe it's more than a year), so 2 would qualify, despite how they word the reason statement.  On FICO 8, I think one thing "short account history" references is AAoA, and you're under the 7.5 year threshold that's believed to be the max for that metric.


Message 9 of 13
BrutalBodyShots
Super Contributor

Re: Why such a difference between FICO Auto 2 and 8 ?

Based on the replies above my thought that an open auto loan may matter definitely isn't correct.

Message 10 of 13
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