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NEW FICO SCORE!!!! (FICO 10 is HERE!!!! )


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Also of note was a comment that seemed to have been a direct aim at the Boost product...

 

"The new scoring model will also likely create a wider gap between those who are considered good credit risks and those who are not. Consumers who already have good credit, for example, and who continue to whittle down their already existing loans and make on-time payments will see higher scores. But those who score below 600 will see bigger dips in their scores under the new model.

 

This is a shift from many of the consumer-friendly policies that have popped up in recent years aimed at bolstering credit scores and building scores for those with little to no credit history by adding in payment history and account information."

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46 minutes ago, mdcrabber said:

I guess the kiddie forum will stress out over how to achieve their 10 scores, followed by applying for a crappy card that gives you a free F 10 score.

Considering how few even use F9 right now, I am guessing it will be five to ten years before we really see any movement towards the use of F10, even as a freebie on the websites.  Fair Isaac income stream will show as a slight uptick as people rush to pay for it on their website though. 

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So I wonder if the negative reason code of "No installment loans" will be eliminated?

 

FICO also plans to flag consumers who sign up for personal loans, which are generally considered more risky since these are unsecured and typically do not require collateral like a car or a house.

 

We also know that NOT all personal loans are unsecured, so also wondering if FICO 10 will differentiate between secured and unsecured for scoring purposes?

Edited by Rogue
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1 hour ago, Rogue said:

So I wonder if the negative reason code of "No installment loans" will be eliminated?

 

FICO also plans to flag consumers who sign up for personal loans, which are generally considered more risky since these are unsecured and typically do not require collateral like a car or a house.

 

We also know that NOT all personal loans are unsecured, so also wondering if FICO 10 will differentiate between secured and unsecured for scoring purposes?

 

Possibly the reason code will be replaced with "No asset-secured loans".   Auto and mortgage loans will continue to be weighed positively as evidence of sound "credit mix".  Even unsecured installment loans have they're place as credit mix components.  However, reportedly FICO 10 is wary of such loans when they're used to "clear the decks" of existing revolving debt.

 

A lot of the press discussion re FICO 10 is supposition.  On a snapshot basis, I don't see there being a lot of negative scoring emphasis on the presence of a personal loan.  There are many valid reasons to take a signature loan that don't involve snowballing debt (the concern expressed in the article).  However, the new "trended" score (FICO 10 T) would readily be able to identify debt taken specifically to consolidate revolving balances, yielding the potential to rack up higher overall indebtedness, and evaluate/score the corresponding default risk accordingly.

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In 2017, Vantage 4.0 introduced scoring based on trended credit data.

 

https://your.vantagescore.com/vs40-intro

 

Well over a year earlier the mortgage industry began working on required changes to its data exchange standards to support trended credit data.

 

Now FICO has version 10T.

 

We are witnessing the very slow march toward the GSEs accepting Vantage Skores (and potentially other skores) for mortgages.  

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What the new FICO credit score reveals about the precarious state of Americans’ finances

 

 

Quote

“If you are trying to figure out the state of someone’s finances and stability and you aren’t taking personal loans into account you’re leaving out something significant,” he said, adding that “it’s a good thing FICO put it in.”

 

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I really hate how these stories suggest that algorithms for existing score models are being changed.

 

FICO changed its scoring methodology at a time where average American credit scores hit an all-time high

 

Fair Isaac Corp. (FICO) is changing how it calculates credit scores

 

Related: FICO just updated its scores — here’s what you need to know

 

 

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1 hour ago, hegemony said:

The whining in the comments section of that article hurt my eyes...been a while since I had to roll them so hard.  I hate the current generation and the speed with which it runs from any manner of acceptance of responsibility. 

 

The other part that cracks me up is the whining about interest rates.  Pay the cards at the end of the month and the interest rate matters not one whit, meanwhile you have collected the rewards for the expenses you would already have been paying.

 

Claims like "financial slavery" or the idiot asserting that use of credit "works against you" clearly do NOT understand how to make the financial systems work FOR the consumer.  That "PaperBoy" idiot then goes on to claim that "FICO is not a winning score, but an "I love debt" score" which ignores that the use of credit is NOT debt.  And that was followed by "StuartYoung" who claims "Constantly borrowing money for things that you want now as so many people do, you always have the interest factor working against you. All you need to do is live within your means, pay yourself first (a regular savings plan) wait to buy those important things until you have the cash to pay for them" while AGAIN ignoring that the consumer who reaps the rewards and pays in full is paying precisely ZERO interest.  But the snake-oil disciples walk lock-step with their fellow cultists...

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On 1/24/2020 at 6:56 AM, Rogue said:

So I wonder if the negative reason code of "No installment loans" will be eliminated?

 

FICO also plans to flag consumers who sign up for personal loans, which are generally considered more risky since these are unsecured and typically do not require collateral like a car or a house.

 

We also know that NOT all personal loans are unsecured, so also wondering if FICO 10 will differentiate between secured and unsecured for scoring purposes?

Meaning the SSL trick may not work for 10?  Perhaps it would help being that those are paid right down before they report...  ala NFCU.

Edited by pacemaker67
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35 minutes ago, pacemaker67 said:
On 1/24/2020 at 4:56 AM, Rogue said:

So I wonder if the negative reason code of "No installment loans" will be eliminated?

 

FICO also plans to flag consumers who sign up for personal loans, which are generally considered more risky since these are unsecured and typically do not require collateral like a car or a house.

 

We also know that NOT all personal loans are unsecured, so also wondering if FICO 10 will differentiate between secured and unsecured for scoring purposes?

Meaning the SSL trick may not work for 10?  Perhaps it would help being that those are paid right down before they report...  ala NFCU.

Looking at my reports showing SSL activity from several years ago, they are specifically marked as secured.  That seems to be different from what the article says is targeted, though there is no way to know how accurate the article's interpretation is.  FICO's web site is also vague on the issue.

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41 minutes ago, hegemony said:

FICO10t will also make those who play the BT game pay a price.

Qualify that by limiting it to those who don't meaningfully reduce total debt balances month to month, and I'll agree.

 

However, I'll suggest that those who take advantage of promo rates by transferring existing balances, and even those who take advantage of promo offers to deposit cash to checking, won't see significantly worse score impact than they do at present (provided that in intervening months, there's demonstrated repayment progress).

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