New FICO scoring model focuses on 24-month look back

What’s in your FICO score?

With mortgages in mind, your past 24 months of credit behavior, called trended data, will be front and center with the new FICO 10 and FICO 10T scoring models being released this summer.

Paying bills on time and keeping balances in check are likely going to see a gain in score. Consumers with recent delinquency or high utilization are likely going to see a downward shift (in score) and depending on the severity, and recency of the delinquency it could be significant, all according to Dave Shellenberger, vice president of FICO’s product management.

FICO 10 and FICO 10T will be more predictive, allowing lenders to extend credit to more borrowers at better rates overall, according to Joanne Gaskin, FICO’s vice president of Scores and Analytics. FICO 10T purports to reduce mortgage default rates by…


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