Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History

Member Summary
Staff Summary
  • Also categorized in:
Thanks for visiting Join for free to remove this ad.

Why not give us your opinion, thoughts, or conclusions instead of just using a copy and pasted thread title and then pasting a link with probably the most vague question known to man?

I am guessing lenders will push for a score that DOES include liens, judgements, and collections to better stratify RISK.. the fall of FICO?

I have no negative info on my credit and it jumped 50+ points overnight, in last few months. I'm around 830-850, but at the same time i was just denied a store card with Home Depot, lol. Nothing. Not even a 500 credit limit. Shows you how idiotic the system is.

tx JaxFL appears to confirm article is legit

SinglePapa said:   tx JaxFL appears to confirm article is legit
  A sample pool of one person confirms it's legit? Did you even read your article? Jax doesn't have anything negative on their credit reports, which is what your article is talking about...

By the way, this has been known for quite some time. FWF is going downhill and an increasing pace. 

The article makes it sound like FICO is trying to deliberately boost the credit scores for no valid reason, other than to allow Banks to make more loans.

The truth is that the FICO score is constantly being optimized to make it more predictive of the risk of default for the kinds of loans that lenders make based on the FICO score:

1. When FICO stopped including medical debt in 2014, it was because many people who default on medical debt, are often good credit risks since they rarely default on Bank/credit-card/mortgage loans. Since Banks don't care if you default on your medical bills, as long as you keep paying credit-card & mortgage debt it makes sense that FICO was updated in this manner.

2. Now Fair-Isaac has determined that people who default on tax debt or civil judgements (eg car accident in which you were under insured) are also not much more likely to default on credit-card or mortgage debt than those without such tax debt or civil judgments, it makes sense to update FICO to reduce the weight given to these kinds of blemishes in the Credit Report.

3. Somewhat surprising is that people who go to collections but then settle their debt are also not much more likely to default on new debt, than those that never went into collections. This is not really surprising since anyone could accidentally end up in collections because they missed some bill and as long as the debt is promptly settled they are not really the kind of deadbeats lenders worry about.

Even though all these changes may increase the average FICO score, lenders also have access to the actual default risk table that tells them the default risk for new loans associated with each FICO score value. Their lending decisions are ultimately driven by the risk of default (as estimated by Fair Isaac's FICO risk model), and the absolute FICO score does not matter.

Deja vu all over again (RIP, Yogi) -

Disclaimer: By providing links to other sites, does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to

Thanks for visiting Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017