It’s made all the headlines, and everyone seems to be talking about it, MSNMonday had an article, it’s all abuzz on the various credit boards.

They will use segmentation…for instance - now they are going to use score cards?? A 700 with a BK on record does not equal 700 w/o BK, for example.

And when will this happen? FICO will update for Experian sometime during the 1st quarter 2008 and TU and EQ will update sometime during the 3rd Quarter of ‘08. As of Jan 4, EQ has no plans for FICO08 anytime soon. Also EX is still having delays.

Another rumor: right now the average FICO is about 680 and the median FICO is about 723. it looks like scored with FICO08 these will be falling, as perhaps by as much as 5%. Reasoning: 30% of people use AU accounts and most of these people probably have HIGHER scores because of it (some of course have lower scores because of AU accounts that are, e.g., maxed out). Also, FICO is moving from 10 to 12 segmentations. part of the segmentation strategy is to reduce the score losses from the removing of AU tradelines from the calculations. So this means credit will be tightening even further and less people will able to avoid homes. Good timing, people!!

Here is some information from TransUnion…http://newsroom.transunion.com/index.php?s=press_releases&item=437

Last Rumor: FICO08will be used in the mortgage industry but not widely adopted by credit card issuers. FICO is trying to placate people in the mortgage industry but credit card issues will most likly continue to but existing scores.

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