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)
Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.
