Newest FICO Score now available from Equifax to help lenders improve risk management, make best decisions throughout consumer credit lifecycle
FICO announced the availability of FICO® Score 9 from Equifax for lenders and other businesses. This newest version of the FICO® Score introduces a more nuanced way to assess consumer collection information, bypassing paid collection agency accounts and offering a sophisticated treatment differentiating medical from non-medical collection agency accounts. This will help ensure that medical collections have a lower impact on the score, commensurate with the credit risk they represent. These enhancements help credit grantors because they result in greater precision.
FICO has used sophisticated modeling techniques to make the new FICO® Score 9 more predictive of a consumer’s likelihood to repay a debt than previous versions. This latest version of the FICO® Score, the industry-standard measure of U.S. consumer credit risk, captures recent consumer behavior to give lenders better risk assessments across the credit lifecycle and all credit products.
FICO data scientists used an innovative, multi-faceted modeling approach to develop a new FICO® Score that addresses the subtleties of today’s credit granting environment. Among the results is that FICO® Score 9 supports the desire of credit grantors to better assess the risk of consumers with limited credit history – so-called “thin files.” Credit grantors can safely grow their lending portfolios because with FICO Score 9, more
Source: FICO Press Release