FICO info from the Horse's Mouth

Discussion in 'Credit Talk' started by Flyingifr, Sep 24, 2003.

  1. Flyingifr

    Flyingifr Well-Known Member

    Guess I'm not going to sue MyFico - they refunded my money. And I was all set for a good court battle over less than $13. :(

    I just got off the phone with Barry Paperno at Fair Isaac (Yes, GEORGE, the originators of the RNG). First, he apologized that I had such difficulty getting a mailing address for FICO and agreed that, yes, it was stupid to try to conceal something that is public record.

    In our conversation it came out that he was one of the people who helped derive the algorithm that generates the FICO score. I asked him some direct questions that are concerns of many posters on this board. Here are the questions and his answers:

    1: Does the algorithm incorporate any non-credit information, such as zip code, age, etc... that would be used to score people into bands on "people like you..."? Answer - absolutely not. The algorithm uses nothing but the credit file as it stands at that moment of time.

    2: How can the addition of a derog trade line cost 40 points and its deletion two months later, with no other changes in the credit file (no new accounts - no inquiries - only small decreases in mounts owed, no new lines opened or closed - only yield a refund of 16 points (this happened to me). ANSWER: The true FICO algorith wouldn't respond like that. Fxperian does not use dthe true FICO algorith, EFX and TU do.

    3: What are the possible effects of the inclusion of a single new 30-day late line? ANSWER: It depends on the rest of your file. If, on one hand, you have a long credit history without prior problems, the new line would have a very small impacy. On the other extreme, of you already have a recent BK and lot sof other recent derogs, taht one line can cost up to 100 points.

    I suggested he join this board and post occasionally. Whether you believe him or not is up to you, but I think he has something valuable to add. In any event, it would be fun to see him and GEORGE go head-to-head.

    GEORGE Well-Known Member


    I owe LESS with 674...than I did with 739!!!


  3. Flyingifr

    Flyingifr Well-Known Member

    I did ask him about that. he said it shouldn't happen, UYGF. You gotta stop eating Shredded Wheat for breakfast, GEORGE, it's lowering your FICIO score.
  4. gretchen

    gretchen Well-Known Member


    Wow! You hit FICOpot! You did good!

    GEORGE Well-Known Member

    Re: Re: FICO info from the Horse's Mouth

  6. faztcobra

    faztcobra Well-Known Member

    I think I'd want to know about prime and subprime creditors showing up on your CR and if there really is a difference in them, not to me, but to the CRAs? For example, is having Citibank on my report better than having Chase? I keep seeing on here that once all open "subprime" accts are removed, then your score will increase. Is there REALLY any proof of this? Does one creditor get assigned a higher value than another? Aside from a department store card vs. a visa/mc/amex is there really any difference?

    I bet this board would have a 1000 questions if someone that knows the inside and out of the FICO algorithm ever registered here.
  7. Flyingifr

    Flyingifr Well-Known Member

    Re: Re: Re: FICO info from the Horse's Mouth

    Don't know about FICO but your weight will go up. Those things are almost pure lard.
  8. Flyingifr

    Flyingifr Well-Known Member

    See what a nice, threatening ITS letter can accomplish???
  9. Flyingifr

    Flyingifr Well-Known Member

    Re: Re: FICO info from the Horse's Mouth

    Next time I talk with him I'll ask, and post it here.
  10. Flyingifr

    Flyingifr Well-Known Member

    Re: Re: FICO info from the Horse's Mouth

    Here, brought to yoiu through the magic of "cut-and-paste" is FICO's answer:

    To answer your question, the FICO score does not consider a credit card lender being known as sub-prime to be a factor. Neither does it consider the interest rate, or whether or not a credit card is secured.
  11. scorpio07

    scorpio07 Well-Known Member

    Re: Re: FICO info from the Horse's Mouth

    Great Info. Now I know that having a secured card listed is not hurting my fico. I have two secured accts with my credit union. If anyone is in the Philadelphia area and are looking for a CU check out Philadelphia Police and Fire Federal Credit union.

    Thanks for the INFO.
  12. faztcobra

    faztcobra Well-Known Member

    Excellent! Thanks for getting that info. I'm still glad I kicked Providian to the curb.

    I recently paid a $35 bill for them THE DAY THE BILL POSTED...and the following statement still had .10 in interest charges on it. I HATED the no grace period. Oh well, I'm happy - it likely cost them more than .10 to get .10 from me.
  13. Hedwig

    Hedwig Well-Known Member

    While a secured card might not hurt your FICO, I guess it could hurt on a manual review. Of course, a lot of things are different (good and bad) on a manual review.
  14. FedUp2003

    FedUp2003 Well-Known Member


    If you get the chance to talk to him again, I know a lot of folks, including me, would like to know how big a hit a Paid Collection is, and if the amount of score reduction differs based on how old the Paid Collection is and what the original amount reported was ...

    Also, I'm stunned to learn that a new 30 day late TL can drop you as much as 100 points if you have other recent baddies/derogs!

    That and having high usage is probably what's killing me. When I was out of work for 7 months, several CC's went 30 days late, and since this would constitute having numerous recent derogs, then if just 1 more hits, then it could drop 100 points ....

    I wonder how long it takes to recover, how long of good payment history it takes to reverse that point drop?

  15. bugman

    bugman Well-Known Member

    my most recent excuse from FICO was a Baddie (collection) combined with a late pay somewhere else.

    now (collection gone), ill have just the late pay so im hoping for another significant gain in my fico score...

    ill let you know how it works out....
  16. FedUp2003

    FedUp2003 Well-Known Member


    Any more dicussions lately with your FICO knowledgable friend?

  17. FedUp2003

    FedUp2003 Well-Known Member

    deleting, somehow double-posted...

Share This Page