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     | Monday, January 15, 2001 - 09:07 am  I think this link from Fair Isaac's home page is interesting: http://www.fairisaac.com/servlet/SiteDriver/Content/1741 From their press release: "Leveraging more than three years of dedicated research, the scores' boost in predictive strength is due to a new design blueprint. Still, NextGen scores are engineered with a 'look and feel' nearly identical to our classic scores. So, there's almost no impact to operations when switching to the newer scores." These new scores have a boost in predictive strength?! Wow, I've always thought their old scores were so accurate that there would be no need to even try to redesign their blueprint. God bless Fair, Isaac.
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| | Monday, January 15, 2001 - 12:18 pm Thanks much, Erik. From the Fair Isaac site: "Among a subprime population -- credit files with prior serious delinquencies or charge-offs-- a lender using the NextGen risk scores in lieu of the classic risk scores could increase the number of approved loans by 6 - 10% while still lowering losses." Finally Fair Isaac ADMITS that they scored at least 6 - 10% of the "subprime population" too LOW! This is great news for anyone who wants to sue. "NextGen scores are generally available in the US at Equifax (called Pinnaclesm) and are available in pilot mode at Trans Union (called PRECISIONsm). Fair, Isaac classic risk scores will continue to be available at all three major credit reporting agencies." Of course that means TWICE the confusion about what impacts your credit scores and how to increase the scores. I got Acrobat 4 and my T button is grey and I can NOT copy from the documents linked. So I'll just retype some of the changes: "There are now more than 80 predictive variables behind the NextGen scores - nearly twice the number used for the classic FICO risk scores." "There are now 18 separate scoring models, vs. 10 for the classic risk scors." The new scale is 150 to 950. I found NOTHING at the Fair Isaac site on the new scores except those .pdf docs. I called various info numbers provided but got only recordings referring me back to their web site.
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| | Monday, January 15, 2001 - 03:02 pm And I e-mailed Greg Fisher yesterday twice to keep him apprised of these new changes... Here were my comments... Did you know....read up on this crap... "NextGen" FICO scores on the FI website! Link is off the home page, and it goes on to describe "Pinnacle" and "Precision" for Equifax and Trans-Union, respectively. The old slop is now called "Classic" FICO Scores. Not exactly a Red Cadillac Eldorado....NextGen FICOs are even for Mortgage Lending now...so are the scores released going to be Classic or NextJunk? MORE QUESTIONS THAN ANSWERS, if you ask me.... Factoids: The NextGen scoring range will be between 150-950 (that is, an 800 point range), and traditional score to odds relationships are supposed to be maintained. As if we didn't have enough reason codes before, there are now at least double--80 of them!!! More tea leaves for the FICO fortune-teller gurus. They keep saying they "leveraged more than 3 years of research" in their brochures with the same agonizing nauseating anti-think drone as their propaganda of "pioneering." Just as people spent over 3 years 10 months getting these jokers to cough up the scores, they were busy beavers too!! I'd assume the 1997-2000 data will be all they used during this development, so, once you think you got 'em snookered -- ZOWIE -- they've de-duped ya with the new scoring system while they are just about to release the obsolete product for consumer purposes. The approval rates of "subprime" will increase -- but read between the lines carefully -- this will mean lenders will further kick the snot out of consumers with MORE risk-based pricing!
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| | Tuesday, January 16, 2001 - 05:24 pm Change sure is frightening, isn't it? As for me -- I love it. Out with the old and in with the new. Fair Isaac statistics indicate that 7 out of 8 people that score less than 620 will repay their loan without becoming seriously delinquent. Accordingly businesses are faced with the less-than-desirable situation of looking at 8 people, wanting 7 of them as customers and having to say, "Sorry folks..."
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| | Tuesday, January 16, 2001 - 06:34 pm The frightening part is how much TIME this will suck out of our days, trying to figure out how the NextGen scores work and how to get higher scores. I can think of better things to do.
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| | Wednesday, January 17, 2001 - 04:57 am I can already tell you three easy ways to increase your scores. 1. Pay all your bills on time. 2. Pay down your debt as much as you can. 3. Limit the amount of new credit you apply for.
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| | Wednesday, January 17, 2001 - 05:57 pm Uhm, I'm confused. Why are you reading and posting here if it's so simple? Might as well just shut this forum down and replace it with ONE page. To get better credit scores: 1. Pay all your bills on time. 2. Pay down your debt as much as you can. 3. Limit the amount of new credit you apply for. Why am I SOOOO tempted to do just that?
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| | Wednesday, January 17, 2001 - 09:06 pm i have been doing that for over 2 years and my scores always float between 620 and 660. never a late payment, no extra plastic, and even when i pay off a big load of debt, the score goes up only a few points. still no luck getting a 70% LTV mortgage on my house at anything less than B/C rates because of FICO. wells fargo offered me 10.125% with one point. with a 680 middle score, the same loan at 70% LTV is 7% with no point.
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| | Thursday, January 18, 2001 - 01:40 pm Speaking of new scoring models, did the adverse factor codes change for FICO via Experian? I got a copy of my tri-merged from the broker today. Equifax and TU still showed adverse codes using numerals (i.e., 14, 5, 8), but the Experian adverse codes were actually letters, not numbers (X, O, B, F). Anybody have a clue on this?
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