FICO (NYSE: FICO), a global analytics leader, today announced the latest release of its flagship FICO® Score, the FICO® Score 10 Suite, will be available this summer.
Built with FICO‘s deep expertise, the new FICO® Score 10 Suite gives lenders unparalleled flexibility and predictive power to make more precise lending decisions. The new FICO® Score 10 T incorporates trended credit bureau data to further enhance predictive power. Leveraging the most comprehensive data available, FICO Score 10 and FICO Score 10 T outperform all previous FICO Scores.
By adopting the FICO® Score 10 Suite, a lender could reduce the number of defaults in their portfolio by as much as ten percent among newly originated bankcards and nine percent among newly originated auto loans, compared to using FICO® Score 9. The reduction in defaults is even higher for newly originated mortgage loans, at 17 percent compared to the version of the FICO Score used in that industry. These improvements in predictive power can help lenders safely avoid unexpected credit risk and better control default rates, while making more competitive credit offers to more consumers.
Delivering Increased Predictive Power
FICO® Score 10 delivers increased predictive power while preserving the trusted and proven FICO Score minimum scoring criteria. Plus, FICO Score 10’s backward compatibility to previous FICO Score versions ensures continuity, ease of use and stability for lenders and investors. Lenders can more easily transition to FICO Score 10 since it includes standard FICO reason codes, a similar odds-to-score relationship as prior versions and consistent score ranges.
“Clients value the dependability and industry-leading predictive power of the FICO Score,” said Jim Wehmann, executive vice president for Scores at FICO. “FICO is a cornerstone for consumer lending decisions. We continuously innovate using the latest, most robust data, while maintaining consistency with previous models to ensure backward compatibility and minimize operational changes required to adopt a new score.”
Driving Precision and Flexibility with Trended Data
To further enhance predictive power, FICO® Score 10 T incorporates trended credit bureau data. Different than traditional credit bureau data, the use of trended data considers a historical view of data such as account balances for the previous 24+ months, giving lenders more insight into how individuals are managing their credit.
“Many lenders want to leverage the most comprehensive data possible to make precise lending decisions,” Wehmann added. “By offering a score that taps further into trended data, we’re able to give lenders greater flexibility and predictive power, as well as ease of integration.”
The FICO® Score is the independent standard measure of consumer credit risk used by lenders in more than *90 percent of all consumer credit decisions in the US and is provided free to consumers through hundreds of lenders via the FICO® Score Open Access Program. 25 of the largest credit card issuers, 25 of the largest auto lenders and tens of thousands of other businesses rely on the FICO Score for their consumer credit risk analysis and federal regulatory compliance.
FICO® Score 10 and 10 T provide a precise assessment of consumer credit risk on all credit product lines – mortgages, auto loans, credit cards, and personal loans – and can be used across the entire customer credit lifecycle, starting with marketing/pre-screen, origination and account management, all the way through early-stage collections. The new FICO Score Suite will be available to lenders through the U.S. credit reporting agencies starting this summer. FICO will also offer industry-tailored scores in the FICO Score 10 Suite.