Fair Isaac Rolls Out New Credit Scoring Service
Fair Isaac Corporation., the company that developed and markets the FICO credit score, has rolled out a new subscription service that it said will help credit unions better measure borrower risk in the current economy.
The company said the new offering, dubbed the FICO Score Trends Service, will help users of its scores in their migration to the FICO 8 credit scoring system; will offer specific scores designed to measure risk for specifically credit card loans, mortgage loans and auto loans and will enable credit unions to compare their loan performance data against other lenders in their metropolitan statistical areas.
Fair Isaac rolled out the FICO 8 score in July of 2009. The new scoring system paid less attention to consumer's one time or occasional late bills when calculating credit scores, but gave more weight to how much a consumer used available credit lines. The new score also attempted to do away with consumers "piggy backing" on other people's better credit scores when making credit applications. The company said that over 500 lenders, including five of the seven largest banks and four of the five largest credit card issuers.