FICO Gets a New Look!

 

Fair Isaac Corp. is in the process of coming out with a different way to forsee consumers  FICO credit scores as well as  future default risks.  Fair Isaac Corp. is the  company that contructed the  FICO credit score.
 

*The new design will predict how lenders can offer even more debt to consumers without taking on unnessary risks.

*The update revamps the old credit-scoring formula so that it penalizes consumers with a high debt load more than the earlier version. FICO 08 should increase predictive strength by 5 to 15 percent.
 

*This new design is  expected to be better at determining if a person who has a past history of  defaults and if they are going down a better path.   It also addresses if these people should have higher scores.
 

*According to the company, this updated index can take a look at 3 people with a FICO of 700 and predict which of these individuals could take on an increase amount of debt without defaulting.

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