I have a Wash. Mutual CC and they send me alerts if my FICO score changes +/- 20 points. I received an e-mail that contained the following information: "Although FICO(R) scores can change over time based on changes in your credit file, we want to let you know that a recent update to the FICO scoring system may result in an additional change to some people's FICO scores. Our system has been updated to return the most recent version of FICO score, so you might see a different score the next time you visit the site. We expect that most people will see a relatively small change in their score as a result of this update. Fair Isaac--the company that developed the FICO score--changes the scoring model periodically to reflect the current lending environment. This updated version of the model ensures that the FICO score continues to be reliable, consistent, and powerful risk assessment tool." My score has been in the 670s the last several months and today it's 728! a 52 point increase! I checked my credit report printouts and don't see anything that may have just fallen off, but I have been working hard to improve my score. Does anyone know the specifics of the new FICO changes? I've heard the effective date is Sept 1, so that doesn't explain the big jump in my score. Thanks, Sledge
It is not always information in your report that effects your score, the "marketplace" has just as much an effect. With increased mortgage defaults, there will be an obvious spillover into late payments on CCs and auto loans, etc. Obviously you would pay a mortgage that is slipping before a CC payment. So, as other consumers "worsen" their score, yours improves.
Here's my 2 cents worth: With FICO stopping calculating Authorized User accounts (AU's) into the equation, people whose credit scores were bolstered by AU TL's have taken a big hit in FICO scores. Since FICO uses the technique of scoring a single person relative to others with similar characteristics, someone in the same group who did not have any AU TL's suddenly looks a LOT better than someone with an AU TL. That appearance may be explained in a suddently higher FICO score.
It would be interesting to hear from anyone experiencing a "drop", who had several AU accounts on their reports. The "new" scoring model is not supposed to be out until Septmeber, but I would be curious to see if they are scoring based upon the new model now.....
You would just see a drop on one credit reporting agency in September. That is presuming someone doesn't file a declaratory action w/ a TRO before then.
Exactly, it will be an interesting "gauge" to compare the score differentials between the CRAs. Soon enough we'll see....
Hopefully, there will be a large enough disparity that someone will file to enjoin Fair Issac and the other two credit reporting agencies from pressing forward. Many folks are going to be negatively impacted from this but, you're right, we'll have to see.
I'm waiting to see some "misrepresentation and fraud" cases come out of the housing foreclosure scenario on this. As investigations continue, people with their jobs on the line are going to start looking for an out. I'd expect the future will hold a "Catch-22" that it is legal to "purchase" the score increase, but "illegal" to use it.
I wonder though if anyone could prove the elements of fraud or misrepresentation? That is to say that brokers and loan officers for lenders clearly look at all the information so it's not like anyone is hiding the ball. I could see the defense of "consent" and "unclean hands" being used effectively although the latter pertains to equity. Who knows, I just think it a very tough argument to prove fraud in a mortgage context when all the information is used by the person claiming the offense.
They may have a case if (somehow) they can show the credit score was "highly" influenced by purchased "AU" accounts, and the consumer signed the disclaimer that the credit report was fully representative of their credit performance. In short, a lender would have to make the case that they would NOT have approved the loan without the purchased AUs. I would expect "new" guidelines and procedures tobe put into place, for this reason. A new level of "due diligence" will be needed when a reviewer sees multiple AU accounts on a credit report. There will be a creative attorney out there who will find a way to construe this as a fraudulent act. There were similar cases in the securities markets many years back, and measures (and requirements) were instituted to ensure accuracy in reporting.
