The latest on FICO credit scores

Fair Isaac Corp., maker of the popular FICO credit score, is rolling out its new-and-improved scoring model, dubbed FICO 08, with Equifax Inc.–the second of the three major credit reporting bureaus to start offering the score to lenders.

Some lenders, generally smaller ones who can switch over their systems more quickly, are already using the FICO 08 score with TransUnion LLC, which began offering the score to lenders in January, says Tom Quinn, vice president of global scoring at FICO. Larger lenders will take longer to switch over. No word yet on when Experian Group Ltd.–which has been in litigation with FICO–will join the other two.

But with two of the three major credit bureaus starting to make FICO 08 available to lenders, it’s likely that some consumers could start seeing changes in their FICO scores.
But regardless of whatever version of FICO that lenders are using, there has been a “noticeable movement into lower scores,” given the economic slowdown and rise in delinquencies, says Quinn. The silver lining is that some consumers’ scores are improving as they pay down their balances, avoid applying for new credit and continue to pay their bills as agreed.

You can improve your FICO score by better managing your money. Try bill management or budget calculator.