Data Facts presents this advanced credit scoring information that covers score cards, delinquencies, and other crucial information on credit scoring formulation.

1. Credit Education 201-Advanced
Credit Score Education
with Blake Higgins and Susan McCullah

2. Today’s Agenda
Recap of Credit 101
Different types of credit reports
Score cards
How delinquencies affect credit scores
FICO 9.0
Q & A

3. Recap of Credit 101

4. Different Types of
Credit Scores and
Reports

5. QUESTION
????

6. I am sorry but your
application has been
denied, because your
credit score is a 580.
WHAT??!!
I just pulled my own
credit score yesterday
and it was a 635!! How
could this happen??

7. FICO VANTAGESCORECONSUMER
CREDIT SCORE
MORTGAGE
CREDIT SCORE
AUTO CREDIT
SCORE

8. •Mortgage Score
•Auto Score
•BankCard Score
•Bankruptcy Risk Score
•Insurance Risk Score
•Generic Consumer Score
FICO

9. 601-700
Non-
Prime
Vantage Score
901-990
Super
Prime
A
501-600
High
Risk
801-900
Prime
Plus
701-800
Prime
B
C
D
F
The VantageScore ranges
from 501-990
A letter grade is assigned to
your VantageScore

10. Industry Option Scores
FICO Mortgage—FICO Auto—FICO Bank Card
Have you
ever had a
mortgage
included in a
bankruptcy
or
foreclosure?
Have you ever
had a car
repossessed?
Have you ever
been unable to
fulfill a lease
obligation to
the original
terms?
Have you ever
had a credit or
bank card go
into collection
status?
Did you settle
for less than
the original
amount?

11. Example
Generic FICO 750
FICO Auto 740
FICO Bankcard 764
FICO Mortgage 763

12. Now that you know
the different types
of credit scores,
you can better
explain some of
the subtle
differences in
credit scores your
customers may
encounter

13. Score Cards

14. Score Cards

15. Score Cards

16. Score Cards
Consumer Who Defaulted
Variables

17. Score Cards
Statistical Model

18. Score Cards

19. Score Cards
Large Number of Consumers…
With Similar Credit History

20. Score Cards

21. Score Cards
Thin Files
Derogatory
Items
Bankruptcy
Long, Lengthy
Credit History

22. 3 Components

23. Characteristics

24. Variables

25. Weights

26. Remember
The weight the
variables receive
depends on the
SCORE CARD the
person lives on.

27. Score Card Hopping

28. Score Card Hopping
Meet Annie

29. Score Card Hopping
Annie had a
bankruptcy
years ago
…so she lives on
the Bankruptcy
Score Card

30. Score Card Hopping
Since filing
bankruptcy, Annie
has managed her
credit wisely
…she pays her bills
on time

31. Score Card Hopping
Since filing
bankruptcy, Annie
has managed her
credit wisely
…she keeps her
credit card balance
low

32. Score Card Hopping
Since filing
bankruptcy, Annie
has managed her
credit wisely
…she rarely applies
for new credit

33. Score Card Hopping
Since filing
bankruptcy, Annie
has managed her
credit wisely
…Annie is at the top
of the group

34. Score Card Hopping
This helps
Annie have a
great credit
score

35. Score Card Hopping
Once Annie’s
bankruptcy falls
off her credit
report
…she moves to a
different Score Card

36. Score Card Hopping
Now, her credit
may not look as
good
…since it’s being
compared to a new
group

37. Score Card Hopping
Annie’s credit
score could
actually…
…DECREASE

38. Other Reasons For A Score Card Hop
Filing
Bankruptcy

39. Other Reasons For A Score Card Hop
Having a
collection hit
your credit
report

40. Other Reasons For A Score Card Hop
One of
your credit
cards
reaches a
certain age

41. How Delinquencies Affect
The Credit Score

42. QUESTION
????

43. Delinquencies
The next chart shows FICO’s
findings on the impact to credit
scores following delinquencies.
*Estimates assume all else held consistent over time (e.g. no new account openings, no
new delinquencies, similar outstanding debt).

45. Delinquencies
*Estimates assume all else held consistent over time (e.g. no new account openings, no
new delinquencies, similar outstanding debt).
The next chart shows the
estimated time it will take for your
FICO score to fully recover

47. Delinquencies
Points to Remember
The degree of impact on a
FICO score depends on the
starting point of the credit
score.

48. FICO 9.0
Find out how the
new
enhancements
could impact your
credit score
FICO 9.0

49. FICO 9.0
3 Main
Improvements
to
FICO 9.0

50. FICO 9.0
MEDICAL DEBTS
will have a
lesser negative
impact on
consumer
credit scores

51. FICO 9.0
THIN FILES
A better calculation
to determine credit
worthiness
for consumers
with little
credit history

52. FICO 9.0
PAID COLLECTIONS
wont hurt your
credit score
like before

53. FICO 9.0
Points to Remember
FICO 9.0 retains the same
numerical range of 300-850
as the previous FICO model
This new scoring model
is NOT YET in use for
consumer or mortgage
use

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56. We offer three exciting CreditXpert products
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56

57. Thank you for Attending!
Coming soon: Trended data
57
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