New FICO credit scoring model

[Miranda]

Fair Isaac Corp. is changing the way it calculates your FICO credit score. It's supposed to be more accurate than the old scoring model. For more information, you can read the article I got this from here.

[Will]

FICO 08 also will draw greater distinctions among different borrowers who are at least 90 days late in making a loan payment, known as a serious delinquency. Traditionally, many credit-scoring models grouped subprime consumers into one general category. But Fair Isaac says its new model will give a higher score to a borrower in arrears if they also have a number of other credit accounts in good standing. Conversely, a person's score could drop if he or she has multiple delinquent accounts.

This seems fair. Once in a while you might forget to pay a bill due to lost mail or a mix up with electronic bill pay.

Great article Miranda!