what is FICO 9?

[superdad]

I have read that under fico 9 that paid medical and other bad accounts that are paid wont show up if a company uses fico 9, my queston is will it auto be removed from your CR? 

[Anonymous]

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@superdad wrote:

I have read that under fico 9 that paid medical and other bad accounts that are paid wont show up if a company uses fico 9, my queston is will it auto be removed from your CR? 

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I don't think it will be removed it just won't be calculated into your score.

[Anonymous]

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@superdad wrote:

I have read that under fico 9 that paid medical and other bad accounts that are paid wont show up if a company uses fico 9, my queston is will it auto be removed from your CR? 

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No, your credit report is your credit report.  Different scoring models can factor in different pieces of data from your credit report different ways.  Some may exclude items all together, while some may weigh different pieces of data differently when producing your score.

FICO 09 is a newer version to the commonly discussed and used FICO 08.  From what I understand it's been around for a few years (maybe 2014?) and is slowly starting to be used more, although it's still fairly uncommon relative to FICO 08.  These 2 models are similar, but certain things like paid medical collections for example may not be considered into a FICO 09 score where they would under FICO 08 or other models.  I think collections under $100 may be another thing excluded from scoring.

The best person to probably reply to this thread would be T. Thumb, who understands the differences between scoring models extremely well.

[Anonymous]

They still stay in your CR because FICO 9 is just one type of FICO scoring model of the many that are out there. Other models such as FICO 2, FICO 8, VantageScore 3.0 etc. may include the paid medical and "bad" accounts. Lenders can also apply their own overlays (custom settings) to the standard score models and include or exclude medical collections or collections under $100 or anything they really want to within certain limits. 

The important thing to remember is that the CR is just a list of data, while the FICO and VantageScore models are the intrepretation of that data based on the different parameters of each scoring model.This is why a FICO mortgage score is different than a FICO general lending  or auto lending score, which are all typically different from a VantageScore.

Hope this helps some!!!

[rebound2014]

I did a lot of reading up on FICO 9 when it was first being set to "release" in the Fall of '14. Virtually all of my wife's negatives are medical related collections. Since it hasn't been implemented by the majority of lenders yet, I really haven't given it much of a look since that time.

If I recall correctly, the main advantages for consumers were the following items no longer be factored into the score:

- ALL MEDICAL COLLECTIONS

- ALL PAID COLLECTIONS

- ALL COLLECTIONS LESS THAN $100 

I will say this though, as someone who has zero negatives on my own reports, and recently had a FICO 9 score used (Personal Loan through Marcus by Goldman-Sachs)... my FICO 9 TU was still roughly 20 pts lower than my FICO 8 TU.

So aside from the change with regards to certain negative information and how it's calculated, there are clearly some other areas of scoring being calculated differently in 9, as well.. although I couldn't tell you what those are.

[Anonymous]

Right, there are no doubt other factors with FICO 09 that are given different weight than the same factors in FICO 08.  As to what they are, there really isn't much data available yet to make any determinations as far as I know.

[Anonymous]

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@rebound2014 wrote:

I did a lot of reading up on FICO 9 when it was first being set to "release" in the Fall of '14. Virtually all of my wife's negatives are medical related collections. Since it hasn't been implemented by the majority of lenders yet, I really haven't given it much of a look since that time.

If I recall correctly, the main advantages for consumers were the following items no longer be factored into the score:

- ALL MEDICAL COLLECTIONS

- ALL PAID COLLECTIONS

- ALL COLLECTIONS LESS THAN $100 

I will say this though, as someone who has zero negatives on my own reports, and recently had a FICO 9 score used (Personal Loan through Marcus by Goldman-Sachs)... my FICO 9 TU was still roughly 20 pts lower than my FICO 8 TU.

So aside from the change with regards to certain negative information and how it's calculated, there are clearly some other areas of scoring being calculated differently in 9, as well.. although I couldn't tell you what those are.

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Collections < $100 (paid or unpaid) are ignored by FICO 8.  It's possible that they are also ignored by FICO 9, but I have seen nothing published by FICO to that effect.

[Anonymous]

I hope it's OK to post this link:

https://www.forbes.com/sites/robertberger/2016/08/28/fico-9-what-you-need-to-know-about-the-latest-c...

[Anonymous]

Note that in the article linked above regarding unpaid medical bills, it states, "...These debts won't ding your credit as much as non-medical debts sent to collection."

My interpretation is that "as much" means that they will still impact score, just to a lesser degree.  I think some have understood the change to be "not at all" not "not as much" which is important to know.

[rebound2014]

Just to clarify my original disclaimer...  "From what I recall..."

Meaning, what I recall reading about almost 3 yrs ago now!  So don't burn me at the stake just yet.. Haha! 

I will say that the message being sold by the bloggers and online sources at that time were all focusing on the medical debt points because, I assume, that made them appear to be an authority on finance/credit which in turn led to more clicks and subscribers.  

At the end of the day, like BBS said, there just aren't enough data points out there to really break FICO's latest release in their DaVinci Code of the Credit-Risk market.

I dare say that if anyone does have an inside track, it would be creditguy since based on the post/comments I've read of his in recent months I get the impression he does actually work in lending.