I read this theory on another board that FICO may be based on a bell curve model hence all the weird point drops and raises that people experience. For those who don't know what it means imagine the liberty bell. The high center is the majority of people out there and the edges are the fringes are either either horrible or excellent credit. In essence FICO has a database of all reports and creates your score based on other people's credit at the same time. I think it's a viable theory since every CRA has percentages of how you rank compared to others with various scores.
Is FICO a bell curve model? ========================== It's a consumer curve deal because it throws him one no matter where he is or what he's doing!
Nah, its not a bell curve. Its curvacious like me in mid-life... Its in all the wrong places, and the amount of the curve changes from day to day and week to week for no apparent reason.
I wonder how often they actually update the curve. If it's a bell curve then it would be a normal distribution. They must have to update the data a number of times a year, it might be monthly but I bet it's probably quarterly or semi-annually. Is there some agreement with the developers of the FICO scoring model and the CRA's to use our credit information? Maybe Fair Issac is given various distribution data about consumers overall credit characteristics.
George says it's a Random Number Generator. I tend to think it's closer to 3-card Monte (and you have the same probability of winning).
I think that FICO has to have some access to the databases of the CRA's in order to create their score. But it's also the lenders who are always changing their criteria for the kind of customers they want. Maybe it's a little of both?
From the horse's mouth: (A Fico spokesperson at a Federal Trade Commission Panel on Credit Scoring) Because of the multiple scorecard design, it's not possible to tell somebody, if you do this, your score will go up by X, because in fact the credit bureau information is a moving target.
A "BELL CURVE" in school is STUPID!!! I was in a MATH CLASS in HIGH SCHOOL the teacher graded a test on a BELL CURVE... GOOD THING IT WAS AN EXPERIMENT!!! Some kids got an F with a 91%!!!!!!!!!!!!! The teacher re-scored the test on the back of the paper...she said turn the paper over...100% of the class got an "A" on the test...on the... CORRECT SCORING SYSTEM 100-90=A 89-80=B 79-70=C 69-60=D 59- 0=F
I think that FICO has to have some access to the databases of the CRA's in order to create their score. alent1234 ================== Scores are deroved from Cra information and with a 70 percent error rate just just how accurate is a credit score??????? ** *** ** LB 59 ""```~~~`` Here is how Fico works: A bag of marbles represents the consumer. CRA 1 shows 25 red marbles in the bag. CRA 2 reports 25 blue marbles in the sack CRA 3 Says 25 Green marbles in the bag. FICO analyzes the information from all three of the CRAS and assigns a score of 75 to the sack made up of 25 each of red blue and green marbles. Upon opening the sack we find it contains 100 black marbles. Why was Fico unable to assign the correct score? The END ************************* LB 59
Re: Re: Is FICO a bell curve model? I was thinking about the â??bell curveâ? suggestion and there is no way they are using a bell curve. They have some type of distribution based on the characteristics of consumer credit reports. The distribution could be â??normalâ? as I mentioned above but I think they have to skew the distribution in someway to make sure the consumers are spread out across all the scoring ranges. Fair Issac would be out of business if they had a small number of scoring ranges. Does anyone have information on the FICO model? Iâ??ve seen the weighting they apply to the various credit categories (see below) but Iâ??m looking for more information. For the FICO model: 35% based on payment history 30% based on amount owed 15% length of credit history 10% new credit 10% types of credit in use
Re: Re: Re: Is FICO a bell curve model? You can't apply any sort of logic to a shell game and that's all FICO is. http://members.aol.com/victcrdrpt/Score.html Here is how Fico works: A bag of marbles represents the consumer. CRA 1 shows 25 red marbles in the bag. CRA 2 reports 25 blue marbles in the sack CRA 3 Says 25 Green marbles in the bag. FICO analyzes the information from all three of the CRAS and assigns a score of 75 to the sack made up of 25 each of red blue and green marbles. Upon opening the sack we find it contains 100 black marbles. Why was Fico unable to assign the correct score? I have never seen anybody answer this question! CAN YOU?
to LBrown The site you referred to above is from a web site called www.victimsofcreditscoring.com or something like that. It was also a part of www.chexsystemssucks.com The web page you show has not been updated in over 3 years and most of it is just plain out of date. While Checsystemssucks was a good site when it was current, it is now pretty much useless as a source of current information.
