Upgraded FICO Score To Debut In September
Starting in September, Fair Isaac will upgrade its FICO scoring system to help creditors avoid subprime borrowers. The upgraded model will improve the accuracy of the FICO score by 5%-15%, and will better assess the danger of lending to the following groups:
Fair Isaac says that, in addition to better predicting the behavior of subprime borrowers, the new FICO score will do a better job in assessing new accounts and borrowers who have little or no credit histories, such as young people and immigrants.Most people can expect their score to rise or fall slightly. — CAREY GREENBERG-BERGER
Fair Isaac changes FICO scoring [Minnesota Star Tribune]
(Photo: Casey Serin)
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I've got debt out the wazoo in comparison to my income and my score is in the neighborhood of 730. Whatever.
@synergy: FICO scores don't take income into account. (Individual lenders do, of course.) Having a large amount of revolving debt, or high balance-to-limit ratios on credit cards, can bring your score down, but "debt out the wazoo" itself doesn't really have any impact on scores.
@timmus: Probably have no past credit history. Everyone is a poor risk at first which is why income is higher on cards issued to students and people who don't have prior credit.
My excellent score probably would have looked just as bad had I looked at it in 1995.
I didn't appreciate the LOLs in the picture attached to this storage, until I went to the person's Flickr account and viewed the previous photo in this set. I asked myself, "What kind of fool has a credit score of 459, and has outstanding real estate mortgages totaling $1.8M dollars?" Then I remembered Consumerist's previous reporting on the infamous Casey Serin.
Oh my!
Wait, what? Since when are creditors trying to avoid subprime borrowers? I thought the whole idea was to lure them in and bleed them dry.
Just something else to earn more money, and to help big corps.. Not to help the customers, if thats what we are even considered.
Credit score - Debt score..
Whoohooo! The Random Number Generator gets a new monkey! AWESOME!
@catnapped:
Nah, they just want to highlight the subprime so they can nail them with fees and high interest.
@synergy:
Right. The FICO score is not a measure of winning - in any way. Its sole purpose is to tell potential lenders how much you love being in debt to them and whether or not it will take a court order to the the money back out of you. Thats it.
I've always wondered what you have to do to get a 300 FICO. Even in bankruptcy a lot of people still hover in the 500s.