Say Goodbye To FICO?
Is FICO Soon To Be a Thing of the Past?
When you apply for a credit card, the credit card company looks at your FICO score to help them determine whether or not to approve you for the credit card. The higher your FICO score, the better your chances of being approved. The problem is, it hasn’t been exactly easy to understand how the FICO score is calculated. It seems more of a magical concoction than an exact science and consumers often find themselves confused. Now the credit bureaus are looking to make things easier.
The New Face of Lending
The three credit bureaus are now coming up with their own credit scoring models. They say that their credit scoring models will be easier to understand and will provide more reliable results than the current FICO model. So does that mean FICO is now going to be a thing of the past? Not necessarily.
In the Hands of the Lenders
Whether or not the new credit scoring models replace FICO scores is currently up to lenders. If lenders decide to continue to use FICO scores and not the credit bureaus credit scores, FICO will be here to stay. However, if the lenders are willing to change with the times, then you may just be able to say goodbye to FICO scores.
Comments
So we say goodbye to FICO. But then say hello to a different system, which could be even worse!!! :-(
Posted by: Very Free | March 31, 2006 10:58 AM