Fair Isaac Is Rolling Out a New Credit Scorecard

Minneapolis-The latest version of the Fair Isaac credit scorecard, FICO 08, is now available for use by lenders. The scorecard is now being marketed by one of the three credit repositories, TransUnion, under the product name FICO Risk Score, Classic 08. The newest scorecard is more predictive than past versions and that is good for both lenders and consumers, said Careen Foster, director, scoring product management at Fair Isaac. The lender can provide the right level of credit to the consumer at the right price, she continued.

When Fair Isaac first introduced FICO 08, it planned on not including authorized user trade lines. This would have matched a competing product, VantageScore, developed by the three credit repositories. However, citing regulations, Fair Isaac modified its stance. The new way authorized trade lines are treated meets the product's goal of helping consumers build their profile, Ms. Foster said. Now FICO 08 severely limits the effect of piggybacking or trade-line renting, where unrelated parties for a fee are added as users.

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