FICO 08 Credit Score Available at All Three National Credit Reporting Agencies
23 July 2009 - 12:00AM
Business Wire
FICO (NYSE:FIC), the leading provider of analytics and decision
management technology, today announced that its FICO� 08 credit
score will be available at all three national credit reporting
agencies by the end of July. FICO noted that since the first credit
reporting agency introduced the FICO 08 score early this year, over
400 lenders have begun using or testing FICO 08 scores, including
five of the seven largest U.S. banks and four of the five largest
credit card issuers.
FICO 08 scores are expected to provide up to twice the
improvement in predictive power compared to FICO�s previous
revisions to its FICO� scoring model. This improvement will
increase the ability of lenders to reduce losses within current
portfolios and to acquire more profitable new customers. The
strongest improvements in risk prediction over current FICO scores
is achieved in key consumer segments such as those opening new
accounts or having prior derogatory information. In addition, this
newest generation of FICO scores includes refinements to help
lenders better evaluate consumers who are comparatively new to
credit.
�Now the way is clear for lenders to upgrade and benefit from
the improvements made to our newest version of the FICO Score,�
said Robert Duque-Ribeiro, vice president and general manager of
Scoring for FICO. �Independent of which credit reporting agencies a
lender works with, it will find in the FICO 08 score the superior
quality in rank-ordering of risk and consistent scaling across the
three agencies that have helped make the FICO score the industry
standard in credit risk management. With this new version, lenders
will benefit from the FICO 08 score�s increased predictive power to
be able to make better decisions across the lifecycle. We encourage
lenders to adopt the new score as soon as possible, and we have
designed it to make their upgrade easy, with minimal operational
adjustments required.�
To streamline lenders� conversion to the FICO 08 score, the new
model retains the same 300-850� scoring range, score reason codes,
minimum scoring criteria, and inquiry treatment as previous
versions of the score. In addition, FICO 08 helps lenders protect
against authorized-user account �piggybacking� by incorporating new
patent-pending technology that materially reduces the potential
score impact associated with the abuse of authorized user accounts.
By considering authorized user accounts in score calculations, FICO
08 continues to support lenders� abilities to comply with federal
regulations. (This information is not intended to be legal advice;
lenders are encouraged to check with their own legal counsel to
determine how best to meet regulatory compliance requirements.)
Since its introduction 20 years ago, the FICO score has became
the global standard for measuring credit risk in the banking,
mortgage, credit card, auto and retail industries. Today FICO
scores are in use at more than 90 of the 100 largest U.S. financial
service institutions. To meet global demand, the FICO score is
available to lenders in 20 countries on five continents.
Businesses seeking more information about the FICO 08 credit
score are welcome to direct inquiries to info@fico.com.
About FICO
FICO (NYSE:FIC) transforms business by making every decision
count. FICO�s Decision Management solutions combine trusted advice,
world-class analytics and innovative applications to give
organizations the power to automate, improve and connect decisions
across their business. Clients in 80 countries work with FICO to
increase customer loyalty and profitability, cut fraud losses,
manage credit risk, meet regulatory and competitive demands, and
rapidly build market share. FICO also helps millions of individuals
manage their credit health through the www.myFICO.com website.
Learn more about FICO at www.FICO.com.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the
statements contained in this news release that relate to FICO or
its business are forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties that may cause actual results to differ
materially, including the success of the Company's Decision
Management strategy and reengineering plan, the maintenance of its
existing relationships and ability to create new relationships with
customers and key alliance partners, its ability to continue to
develop new and enhanced products and services, its ability to
recruit and retain key technical and managerial personnel,
competition, regulatory changes applicable to the use of consumer
credit and other data, the failure to realize the anticipated
benefits of any acquisitions, continuing material adverse
developments in global economic conditions, and other risks
described from time to time in FICO�s SEC reports, including its
Annual Report on Form 10-K for the year ended September 30, 2008,
and its quarterly report on Form 10-Q for the period ended March
31, 2009. If any of these risks or uncertainties materializes,
FICO�s results could differ materially from its expectations. FICO
disclaims any intent or obligation to update these forward-looking
statements.
FICO and 300-850 are trademarks or registered trademarks of
FICO, in the United States and/or in other countries. Other product
and company names herein may be trademarks or registered trademarks
of their respective owners.
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