FICO has introduced new credit scoring models, FICO Score 10 and FICO Score 10T.

In the summer of 2020, Fair Isaac Corporation (better known as FICO) released two new credit-scoring models: FICO Score 10 and FICO Score 10T. The company estimates that 40 million Americans saw their credit score drop by 20 or more points as a result.?

.A roughly equal number saw their scores rise by 20 points or more.

The difference between the two is that the FICO Score 10T model includes “trended data” over the last 24 months. That means it analyzes the direction a consumer has moved with regard to their debts. FICO wants to see if you’ve been paying down debts or racking up new ones1. One of the most important aspects about FICO 8 is that it’s more sensitive to high utilization of credit lines when compared to previous versions of FICO. We recommend that you stay under 30% credit utilization to keep your FICO 8 score from dropping due to high utilization.

?

Trended data solutions analyze a set of data over a specific period of time. It is becoming increasingly common as companies look to expand their customer base and improve risk decisioning. This is because trended data helps identify patterns of past behavior – and these behavior patterns can be used to predict future behavior1.

For example, FICO Score 10T model includes “trended data” over the last 24 months. That means it analyzes the direction a consumer has moved with regard to their debts. FICO wants to see if you’ve been paying down debts or racking up new ones2.

FICO Score 10T model includes “trended data” over the last 24 months. That means it analyzes the direction a consumer has moved with regard to their debts. FICO wants to see if you’ve been paying down debts or racking up new ones1.

The new credit scoring model will be calculated to incorporate consumers’ account balances for the previous 24-plus months, which is bad news for anyone carrying balances month to month. These changes are expected to widen the gap between people with good credit (scores 670 to 739) and those with bad credit (scores below 580

?

In conclusion, FICO has introduced new credit scoring models, FICO Score 10 and FICO Score 10T. These new models take into account trended data over the last 24 months and analyze the direction a consumer has moved with regard to their debts. The changes are expected to widen the gap between people with good credit and those with bad credit. It’s important for consumers to understand these changes and take steps to improve their credit score if necessary.

Received message. In conclusion, FICO has introduced new credit scoring models, FICO Score 10 and FICO Score 10T. These new models take into account trended data over the last 24 months and analyze the direction a consumer has moved with regard to their debts. The changes are expected to widen the gap between people with good credit and those with bad credit. It's important for consumers to understand these changes and take steps to improve their credit score if necessary.

?

I will finance your dream.