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A New FICO Score is Here

May 16, 2018 by  
Filed under Blogs, Credit Score

Credit Score FICO
According to the Fair Isaac Company, FICO recently released a brand new variation to it’s FICO credit scoring model. FICO Score 9, FICO Auto Score 9, and FICO Bankcard Score 9 have all recently hit the market and although adoption of the new algorithms is so far very limited, we can assume that over the course of the next few years more and more lenders will start using this new scoring model. So let’s take a look at this “new generation” FICO score and the impact that it will have on your ability to get credit.

What’s New With FICO Score version 9?

One big change to the new version of the FICO score is that it no longer takes paid collections into account when scoring your credit. Previously, a paid collection would still be considered a red mark on your credit report and lower your FICO score but, the new version of the FICO 9 score does not score PAID collections. Therefore, if you paid off a third-party collection, no matter whether it’s $5 or $50,000, it will not have a negative impact on your FICO 9 Score.

NOTE: 90% of credit borrowing decisions are calculated using the FICO score but, most lenders are still using older versions of the FICO scoring models which take paid collections into account which still lower your credit scores.

Different Credit Scores

Another significant change to the new FICO score is that it scores medical collections differently from other collection accounts. In previous models, all collection accounts were scored the same whether they were for charged-off credit cards, utility bills, or medical bills. The new scoring model from FICO treats unpaid medical collection accounts differently than other types of unpaid collections. If you have unpaid medical collections on your credit reports, they will have less of a negative impact on your new FICO score than other unpaid collection accounts.

Finally, in order to help consumers with very a limited credit history, FICO version 9 includes a new algorithm used for scoring rental history. When reported, your rental history factors into FICO 9 score by taking a comprehensive view of your rental paying history. This should help millions of Americans who pay their rent but, don’t have a credit score, get a fair assessment of their creditworthiness.

Ultimately, it may take years or even decades for this new scoring model to be fully adopted by the lending industry or it may never happen altogether but, it’s nice to know that the powers that be are working on making lending a much more fair and accurate assessment of a consumer’s creditworthiness.


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Speed. Documents are typically processed and sent out for investigation within 3-5 days.

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Another New Credit Score Is Coming

April 13, 2017 by  
Filed under Blogs, Credit Score


If you use CreditKarma.com you might be familiar with the fact that the scores they report are sometimes 5 points off your actual FICO score and sometimes 50 points off. Well, get ready for more fun as the most popular credit score for consumers and least used credit score for lenders gets an overhaul.

VantageScore, a collaborative project from Experian, Equifax, and TransUnion gets it’s 4th upgrade and it will undoubtedly cause a lot of confusion.The VantageScore was created back in 2006 when the credit bureaus noticed a trend of consumers interest in their own scores. Instead of selling consumers scores which they had to buy from other companies – the credit bureaus now had their own scores they could profit off.

So what’s the big change you ask?
Well, this new iteration of the VantageScore will score how much of your debt you actually pay off every month. In short, consumers who pay their credit card debt off in full every month will see their scores increase while those that transfer the debt from month to month will see a decrease in their scores.

According to TransUnion, consumers who do not pay off their cards in full each month are 3 to 5 times riskier than people who pay in full each month. And VantageScore v4.0 will be the first score tracking and scoring this data.

What does this mean to you?
Pay your credit cards off every month to get the most out of your VantageScore and make sure that your credit card balances are under a 20% utilization when the creditor reports your information to the credit bureaus.

What else is new?
VantageScore v4.0 will completely ignore medical collections which are older that 6 months and have been paid by insurance. Unpaid medical collections will see a significant decrease in their impact to your score.

In Conclusion
VantageScore v4.0 is set to be released Fall of 2017 so, you may notice some changes in your scores on CreditKarma.com, CreditSesame.com, Quizzle.com, etc… but, don’t forget one very important thing. At this point, those scores are completely useless because very few lenders actually use the VantageScore scoring model for their lending decisions.

Revealed: A Better Credit Score (coming soon)

March 12, 2013 by  
Filed under Blogs, Credit Score

by: .
credit scores

VantageScore Solutions, the company responsible for a credit scoring model called Vantage Score, has announced that they have updated their credit scoring algorithm and are in the process of rolling out VantageScore 3.0 (V3.0).

The Vantage Score was created in 2006 through a collaboration of the 3 credit reporting agencies, Experian, Equifax, and TransUnion. Its’ purpose was to compete with the FICO score, but very few institutions ever used the model and it never really caught on.

One of the reasons the Vantage Score was overlooked by most consumers and credit lenders was because the range for the credit scoring model was 501 to 990, which confused most everyone used to the Fai Isaac Company (FICO) model which ranges from 300-850.

In a bid to win market share, the updated Vantage Score 3.0 has a changed its’ range to 300-850 as well as making several other interesting changes.

Here are a few changes to the NEW Vantage Score:

  • Range Change from 501-990 to 300-850
  • Paid/Settled Collection accounts will not be included in the credit score.
  • Factors in advance payments (Payments made before due date)
  • Installment accounts are weighed differently depending on terms (Length of Loan)
  • Utilizes Rental, Telecom, and Utility payment data

One more interesting note; according to VantageScore Solutions, V3.0 will be able to provide credit scores to millions of consumers who are currently not scored through the FICO score.

The Vantage Score will utilize non-traditional consumer credit information (rental payments, utility payments, etc…) into its’ credit scoring model which will allow consumers with little or no recent credit to have a credit score.

This equates to approximately 30 million consumers who currently do not have a credit score because they do not meet FICO’s requirements, getting a credit score through Vantage Score.

Only 10% of lenders use the Vantage Score, but if this new credit scoring model proves itself effective, FICO will surely lose market-share and may be forced to implement similar changes into their aging and ancient risk model.


Why Choose CreditFirm.net?

Assurance. Our Credit Repair process was developed by experienced attorneys.

Speed. Documents are typically processed and sent out for investigation within 5 days.

Support. Award winning customer service guarantees your satisfaction.

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