Did you know you have more than one FICO® Score? Since their introduction over 25 years ago, FICO® Scores have become the most recognized and widely used credit scores. But as the credit landscape evolves, so do FICO® Scores, adapting to changes in consumer credit behavior and lender needs.
Let’s explore the world of FICO® Scores, their different versions, and why they matter to you. Can we schedule 15 minutes to talk when possible? If you don’t mind, please schedule a time that works for you here: http://bit.ly/3pWqxy7.
Why Are There Multiple FICO® Score Versions?
FICO® Scores have been updated periodically since their debut in 1989 to reflect changes in credit usage and lending practices. For example, modern credit usage habits, like frequent use of credit cards, require updated models to ensure that what’s normal today isn’t unfairly labeled as risky. These updates result in multiple FICO® Score versions, including the widely used FICO® Score 8 and newer versions like FICO® Score 9 and FICO® Score 10.
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Key FICO® Score Versions
Here’s a snapshot of some FICO® Score versions and where they’re commonly used:
Lending Type | Experian | Equifax | TransUnion |
---|---|---|---|
Widely Used Scores | FICO® Score 9, 8 | FICO® Score 9, 8 | FICO® Score 9, 8 |
Auto Lending | FICO® Auto Score 9, 8, 2 | FICO® Auto Score 9, 8, 5 | FICO® Auto Score 9, 8, 4 |
Credit Cards | FICO® Bankcard Score 9, 8 | FICO® Bankcard Score 9, 8 | FICO® Bankcard Score 9, 8 |
Mortgage Lending | FICO® Score 2 | FICO® Score 5 | FICO® Score 4 |
New Versions | FICO® Score 10, 10 T | FICO® Score 10, 10 T | FICO® Score 10, 10 T |
Want to dive deeper into these versions? Let’s schedule a quick call! Find a time that works for you here: http://bit.ly/3pWqxy7.
What’s New in FICO® Score 9?
FICO® Score 9 introduced notable updates to better reflect today’s credit behaviors:
- Paid Collections: Paid third-party collections (including medical) no longer negatively impact your score.
- Medical Debt: Unpaid medical collections have less impact compared to other debts.
- Rental History: When reported, rental payments contribute to your score, benefiting those with limited credit history.
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Introducing FICO® Score 10 and 10 T
The FICO® Score 10 suite includes:
- FICO® Score 10: Updates reflect increased personal loan usage and better predict risk.
- FICO® Score 10 T: Incorporates “trended data,” analyzing trends in credit usage over 24+ months. For instance, rising balances over time may indicate higher risk compared to decreasing balances.
Let’s connect to explore what these updates mean for you. Schedule a time here: http://bit.ly/3pWqxy7.
Industry-Specific FICO® Scores
Industry-specific FICO® Scores are tailored for specific credit products, like auto loans or credit cards. These scores build on base FICO® Scores, offering refined risk assessments for:
- Auto Lending: FICO® Auto Scores (250–900 range).
- Credit Cards: FICO® Bankcard Scores (250–900 range).
Want to know which score is most relevant to your situation? Let’s schedule a quick chat: http://bit.ly/3pWqxy7.
Which FICO® Score Matters Most?
The most relevant FICO® Score version depends on your credit needs:
- Auto Loans: Focus on FICO® Auto Scores.
- Credit Cards: FICO® Bankcard Scores or FICO® Score 8 are key.
- Mortgages: Base FICO® Scores (e.g., FICO® Score 5) are commonly used.
For general credit needs, FICO® Score 8 remains the most widely used version.
Let’s discuss which FICO® Score version aligns with your goals! Schedule a time to chat: http://bit.ly/3pWqxy7.
Evolving FICO® Scores for a Modern World
Just as technology advances with newer operating systems and smartphones, FICO® Scores evolve to keep pace with modern credit behaviors. By using the latest FICO® Score versions, lenders can make more informed decisions, giving you better access to credit tailored to your needs.
If you’d like to explore this further, let’s schedule a 15-minute chat! Find a time that works for you here: http://bit.ly/3pWqxy7.