myFICO has been upgrading their Score Watch customers to the Equifax Classic 2008 scoring model, previously these customers have been given an Equifax Classic 2004 model. This means that all Equifax FICO scores purchased from myFICO (including single report & three in one) will now offer this 2008 model.
This is good for consumers as more and more lenders are using the updated model (lenders are very slow to adapt new scoring models, they generally use the new models on a small subset of their loan applicants and then compare delinquency rates over an extended period of time to determine it’s better at predicting defaults). It is a bit surprising that they are upgrading to the ’08 model considering the new FICO9 model is set for release later this year.
This change won’t affect your eligibility in getting credit as this is a changed to the scores consumers receive from myFICO, rather than an overall change to which scores lenders use. A lot of people are reporting drops in the 10-15 point range if they have derogatory items such as tax liens on their credit report.
We’ve updated the information found on types of FICO score page to reflect this new information. We’re hoping to land an interview with one of the senior analysts about the FICO9 model before it launches as well. If you’re looking to purchase any FICO scores from myFICO I’d recommend looking at our myFICO coupon page first.
