Jump to content

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


Recommended Posts


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."

Link to post
Share on other sites
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. 

Link to post
Share on other sites

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
Link to post
Share on other sites
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.

Link to post
Share on other sites

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.  

Link to post
Share on other sites

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.”

 

Link to post
Share on other sites

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

 

 

Link to post
Share on other sites
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...

Link to post
Share on other sites
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
Link to post
Share on other sites
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.

Link to post
Share on other sites
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).

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Similar Content

    • By Missash43
      I missed a payment for a federal student loan and about a week and a half ago, it hit 7 years. Isn't it supposed to just fall off? When will that actually happen? Do I have to do something to make it fall off?
       
      Thanks for your help!
       
    • By racer7949
      I recently received a "score" in a letter from a financial institution. The letter revealed that the data was Equifax, but made no mention of the model, just that "Scores range from a low of 501 to a high of 990." That's an awfully high top end, could this be Vantage 4?
       
      Of the five adverse factors listed, three were of the dunning "How dare you use your credit cards!" type, including the fact that I have too many of them. Then I got "No real estate accounts with a valid credit amount." No I don't have a mortgage; I busted my hump for 35 years to own my home free and clear and now it's a negative on my credit score. Lovely.
       
      Then came the dreaded, infamous, Too Many Inquiries! factor; but look how they have juiced it up to sound less negative: "Number of inquiries was also a factor, but the effect was not significant."
       
      BTW, I had one 14 month old inquiry.
    • By silentjc
      Finally posting on this forum after gawking for a while. 🙂
       
      I've been working on my credit repair the last couple of years and am kind of at that point where I'm not sure if there is anything else I can do but wait it out.
       
      Had a medical issue back in 2016 / 17 which contributed to somewhere around 12 account charge-offs and a car repossession. Over the past year and a half, I've been aggressively paying the accounts off (all are at zero balance, settled), disputed as many as I could (several fell off, am doing another round this month), opened five rebuilder / secured / sub prime cards starting two years ago (Citi Secured, Self Secured, Cap 1 Secured, Cap 1 Unsecured, Credit One Unsecured), did the Self Lending self loan (like 6 months left on that one), Experian Boost, have had a high interest car loan the last two years, am about to replace it with a newer car loan at a lower rate, and obviously keep cards paid off every month and paid on time (*accidentally had a 30 day late when I was changing banks and forgot to update the account that was on autopay). 
       
      Looks like stuff starts aging off in 2023 and 2025. Scores went from the low 500s to 696 Trans, 712 Equifax, 625 Experian.
       
      The problem I'm having is that even with everything settled, zero balances, and "good" scores," I'm still in purgatory when it comes to getting an actual decent points card. Capital One gave me an unsecured one a few months ago, but it's a $300 limit on a non rewards card. And since I already have two cards with them (one which is my oldest card now), even though their my "best bet" in the nearterm for a better card, i'm at their card limit. 
       
      Goal Cards in the future are Chase Sapphire, AMEX Blue, AMEX Gold, and Citi Premier. 
       
      Current plan is to just keep sending dispute rounds every few months, keep balances at zero, not apply for anything new at least until early 2022. 
       
      Is there anything I'm missing? Anything I can do sooner to help compensate for the scars from the past on my credit report?
    • By MarvBear
      CARES+Act+Post-Accommodation+Reporting+Guidance.pdf
       
      I have no idea if this will be of assistance to anyone.  It's full of links that are accessible.
       
      Happy reading.
    • By iadorebunnies
      Any explanation would be great. I thought to list a series of events would be better than some long paragraph. I have pics and proof for all events below. 
       
      Mid May: Ordered Vehicle (checked credit score showing 730 at the time)

      June 7: Toyota Financial Services received payment for old lease

      June 12: TFS closed account
       
      June 30: TFS reported to the credit bureau account closed on June 12

      Friday July 9: Credit was pulled by dealer (first of knowing of outstanding balance on a said closed account)Was able to get bumped to a Tier 2. (Nothing was reported nor sent to me that I had an outstanding balance)
       
      Monday July 12: called Transunion because their score was what was pulled that hurt the deal. Transunion said that they show nothing of delinquency on my report AND show no history of it being removed nor it ever being on there in the first place.
       
      Evening July 12: called Experian because no other apps were showing a tier 3 credit score. They also said they had no history of it ever being on my report. (Talked to about five differnent people) They put me on a callback list to speak to a supervisor. Associate had said supervisor was in a meeting and would call back.
       
      July 13: Called Experian again to figure what happened. Received notifications that my credit score had increased 66 points and delinquency was removed notifications on Experian app. (No certainty that it was removed from report because they said there’s nothing bad on my report. I guess I take their word for it??)
       
      Evening July 13: received a notifications from credit apps that Toyota Motor Credit has reported positive activity on a outstanding loan balance. Loan paid.
       
      July 14: Called TFS to request document to cross reference dates.
       
      July 16: Called TFS to speak to Toyota Motor Credit. Turns out there’s no one to speak to in that department. It’s the same as calling TFS. Called Experian again to ask why they are just now reflecting on my credit that I had an outstanding balance that was just closed on July 13 not what TFS sent which states that it was closed in June 12. Experian had told me that the account was closed in June but when I explained to them that’s not what I’m seeing in my emails and notifications, they became combative and hung up on me. No one can tell me how and why on July 9, a inaccurate mistake cost me money and no one can send me my credit report to verify that there’s no delinquency. TFS agree that someone dropped the ball (but not them) and is willing to send any and all reports they have on my accounts. All credit bureaus has yet to send me to any documentation of removal of alleged delinquency and I will never know what happen on July 9th that cost me money. I’m paying more than I should and I could’ve been out of $1k(nonrefundable deposit to order vehicle) because I will not sign a tier 3 deal. Who knows how long I would’ve been without a car in this market if that were true.



  • Member Statistics

    • Total Members
      182,469
    • Most Online
      2,046

    Newest Member
    Rongotti55
    Joined
×
×
  • Create New...

Important Information

Guidelines