FICO 08

thanks for the information MCasper, you put some really good stuff on this forum, thanks for being part of it and putting all the great information out there for us to read up on, appreciate it.

The article is very helpful. I have not pulled my report as yet. I am awaiting the moment I see my report.

FICO is changing its method of calculation of credit score. Termed as FICO 08 will be more lenient towards small mistakes made by the consumers. However consumers with repeated errors will be penalized in a worse manner, harsher than before.

this will come in action by spring this year. It will take time for the lenders to monitor and check whether it is working or not. This model has been developed mainly because for the lender's request for a better risk-management tool.

According to Craig Watts the files which are "thin" or "young", or consumers who are seeking credit more recently and actively are the spheres where lenders are more interested. Thus determination of risk in this zone is essential for them.

the possibility is that two people with the same credit score when scanned under the new model might find difference in calculation. this will be due to the changes like FICO will treat consumers with a variety of credit in a better way and penalize those who uses a high percentage of the available credit.

Another information is that Fair Isaac has sued VantageScore Solutions LLC and the three bureaus for using anti competitive practices and tarnishing the FICO Brand.

I have noted the main points here.

Well...you could be sued for the debt, and a judgment would look really bad. Before then, it would simply reflect a generic medical collection, but FICO scores haven't yet accounted for a difference between credit and medical collections...long answer short, it hurts just the same.

In the example box it said that Alicia's score would rise because she has more lines of credit open that the guy. I wonder if this change will encourage more people to leave unused cards open?
Besides fees, what are the drawbacks for open, unused lines?

When can we really expect to see the change in our credit scores?

Went to the link and read it, sounds like this new reporting system will really benefit some but then penalize others, I am hoping to get some benefit out of it, I have been trying to raise my score for quite some time, I am hoping that by not using a lot of credit cards or even applying for anything in years will help my score.

I read it too, looks like a lot will change.

I really don't like all the changes. I don't like how people refer to those who take advantage of being an authorized user as "credit fraud" as fraud is a crime punishable by law, and that simply isn't the case. That's a whole other argument.