The FICO Scoring Model is Changing – What You Need to Know

It’s no secret that time and time again, Fair Issac Corporation releases new-and-improved scoring models to help lenders make more informed credit-granting decisions. In fact, quite a bit has changed since lenders first began using FICO scores in 1989. This is partly due to the surge in credit use in the modern world. If Fair Isaac algorithms didn’t change as a society changes, seemingly normal credit usage today could very well be considered high risk if using FICO scoring models from days past. The result has made for multiple different FICO scoring models and while FICO Score 8 is most commonly used, models still tend to differ between lending agencies. As you can see from FICO themselves, here is a list of every scoring model released.

For an update on FICO’s most recent changes, check out this Forbes article to catch up on everything you need to know: https://www.forbes.com/sites/advisor/2020/01/23/dont-panic-over-new-fico-credit-scoresdo-this-instead/#6166906715f5