Change Around the Corner for Credit Scoring
Data company FICO, which developed the credit scoring formulas often used by mortgage and auto lenders as well as credit card issuers, will release a new model this summer that it says will analyze risk more correctly. The new model is FICO's first major change in six years and is meant to address lenders' concerns about credit score consistency among the three major credit bureaus. The new formula, FICO Score9, will analyze data to see how a consumer's spending and credit habits may have changed compared to six years ago, before the recession. Consumers with good pre-recession scores may score slightly better in the new version.
From "Change Around the Corner for Credit Scoring"
Chicago Tribune (03/24/14) Umberger, Mary
Data company FICO, which developed the credit scoring formulas often used by mortgage and auto lenders as well as credit card issuers, will release a new model this summer that it says will analyze risk more correctly. The new model is FICO's first major change in six years and is meant to address lenders' concerns about credit score consistency among the three major credit bureaus. The new formula, FICO Score9, will analyze data to see how a consumer's spending and credit habits may have changed compared to six years ago, before the recession. Consumers with good pre-recession scores may score slightly better in the new version.
From "Change Around the Corner for Credit Scoring"
Chicago Tribune (03/24/14) Umberger, Mary
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