FICO Scorecards

FICO Scorecards

by Jan 10, 2022FICO0 comments

Your FICO Credit Score and FICO Scorecards

Most everyone knows what a FICO credit score is; however, the different scorecards used are less known. 

This complicates things, but it is good knowledge to have. We know there are over 50 different FICO credit scoring algorithms in use. Some are specific to an industry (auto, mortgage, etc.). Right now, FICO has rolled out FICO XD. 

The media hype about medical collections not affecting your scores and rentals payments are included is true. But there is a problem; no one is using these versions. A combination known as FICO classic is used for a mortgage – a variety of FICO Verison 4, FICO Verison 5, and Beacon 2 (a FICO product). These are the tried and true formulas, and the banks like them. 

More confusion; many go to CreditKarma.com to get their free scores, but that site uses Vantage, a product of the credit bureaus and not FICO.

Scorecards are used within each version of FICO to group like people. 

For example, someone with bankruptcy would be grouped on a scorecard with others who had a bankruptcy. Someone with multiple charge-offs will be on a scorecard with others with numerous charge-offs, and so on. Sometimes, as someone’s credit picture changes, they jump to a different scorecard. 

This does weird things to the credit score. It can boost it, drop it, or cause it to get stuck. FICO and the credit bureaus will never tell you what scorecard you are on or if you changed. Why? Because they do not have to, and they claim the algorithms and scorecards are proprietary. 

You can have virtually the same credit score as the guy down the street, yet he has had a bankruptcy, and you have never had one. I always see reports that I think that the score will be scary to be surprised to see it’s better than some people with far less. Scorecards are the reason why this happens

Credit Repair

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