FICO Score 9 to Narrow Credit Score Differences

New FICO Score model that narrows the differences in credit scores among the three main credit reporting agencies could help credit challenged car buyers

What we see

New FICO Score Could Help Poor Credit Borrowers

Here at Auto Credit Express we continue to be somewhat surprised by the fact that quite a few consumers with bad credit still don’t understand why the credit scores used by car dealers often aren’t the same as the ones they’ve seen or paid for.

With FICO recently announcing a new scoring model and improvements that should lessen the difference between the credit scores from the three biggest credit reporting agencies (CRA’s – more commonly called credit bureaus), it’s time to talk again about the reasons consumers will typically receive a different credit score from each CRA when they pull their credit before pre-qualifying for an auto loan

What FICO Has To Say

In an article that appeared on the FICO (originally known as Fair, Isaac and Company – the company responsible for the development of the FICO score) website not long ago, Joanne Gasking, product management director for Scores, had this to say, “If there is a score difference across bureaus for a given consumer, then that score difference is 85-90% driven by data differences in the underlying credit.”

Data differences can include:

Posted on August 12, 2014 by in FICO score
Reader Comments

Comments are closed.

Apply Online Apply on Phone Search