An update on an earlier episode where I discuss the FICO ‘08 Credit Score model. This update includes a new change where authorized users will be included in the model. Earlier, Fair Isaac considered removing authorized user information in the FICO scoring model to address the issue of “piggybacking”. While the piggybackers may feel they won this battle, Fair Isaac promises it has found ways to address this issue by figuring out when someone is trying to piggyback it game someone elses FICO Credit Score. It will then not allow those types of auth users to benefit. Below is my original post where FICO had planned to remove the authorized users feature.

June 30, 2008

What is FICO ‘08. Well, hopefully you know what a FICO score is. If you don’t start with our Credit 101 Lesson. Think of FICO ‘08 it like a version of software which takes time to adopt. There are other versions of FICO, like FICO NextGen, and financial institutions have to decide/purchase a version of FICO they want — like choosing Windows Vista vs Windows XP.

What’s different about FICO ‘08? Banks should like FICO ‘08 because it should lead to fewer defaults. For consumers, it should mean better scores for the occasional mishap folks and worse scores for those that are late or more credit distressed.

Post from: Video Credit Score

What is FICO ‘08 and How Does It Impact My FICO Credit Score? – Episode #39