Major Changes Made to the New FICO 08 Model.

Written By: Linda Ferrari, President of Credit Resource Corporation - Author of The Big Score - Getting It & Keeping It - Buying Power for Life.

Just when you thought the credit score reporting process couldn’t get more confusing for consumers, some major changes have taken place in the last year with the rollout of the new FICO score model known as FICO 08.

I’ve always encouraged people to be proactive in addressing and fixing any credit challenges they may have—and that still applies. However, it’s more important than ever before to take a hands-on approach to helping your clients with their credit, and understanding how recent changes may affect credit scores and is a key part of being proactive.

FICO 08 - The Algorithm Has Changed – Better or Worse? You Decide.

Beginning last year, Fair Isaac & Co. implemented changes in how FICO scores are computed, calling the new system FICO 08. The model replaces the existing FICO model, which has remained relatively unchanged since the 1980s.

Per Fair Isaac, here are the key changes in the new model:

• Yes, Authorized User Accounts Still Work—But Only For Family!

Read More