FICO® Score 9 is the second-latest version of the credit scoring model created by the Fair Isaac Corporation. FICO® designed this version to be more predictive of lending risk than earlier versions, even though the score ranges remain the same. [1].
Even though the FICO® Score 9 is an improved version of the FICO® Score 8, lenders still most frequently use the FICԮ Score 8 base score. This means that even if the FICO® Score 9 model may give you a higher credit score, lenders are more likely to still use the older version. [2].
This article explains the specifics of the FICO® Score 9, the factors that affect credit scoring for FICO®, the distinctions between the FICO® Scores 8 and 9, and credit-building advice.
Ever wondered why your credit score varies depending on the source? The answer lies in the different credit scoring models used with FICO® Score 9 being a newer iteration of the widely used FICO® Score 8.
What is FICO® Score 9?
FICO® Score 9 is a credit scoring model developed by the Fair Isaac Corporation (FICO). It’s designed to be more predictive of lending risk than previous versions, especially when it comes to newer credit trends.
Key Differences Between FICO® Score 9 and FICO® Score 8:
- Medical Collections: FICO® Score 9 treats unpaid medical collections differently than other collection accounts, recognizing that they are less indicative of creditworthiness. This means your score won’t take as big a hit if you have unpaid medical debt.
- Rental Payments: FICO® Score 9 now considers rental payment history, which can be a boon for those with limited credit history or who consistently make on-time rent payments.
- Paid Collections: Unlike FICO® Score 8, FICO® Score 9 doesn’t factor in paid collections, meaning your score won’t be negatively impacted once you’ve settled the debt.
Which Credit Score Do Lenders Use?
While FICO® Score 8 remains the most widely used base score by lenders, FICO® Score 9 is gaining traction. Some lenders may even use both scores to get a more comprehensive picture of your creditworthiness.
How to Check Your FICO® Score:
You can access your FICO® Score through various channels, including:
- FICO® Open Access: This free service allows you to view your FICO® Score 8 and 9 from certain credit card issuers and financial institutions.
- Credit Card Providers: Some credit card companies offer free access to your FICO® Score.
- Credit Reporting Agencies: You can purchase your FICO® Score directly from the three major credit bureaus (Experian, Equifax, and TransUnion).
Boosting Your FICO® Score:
Here are some tips to improve your FICO® Score:
- Make on-time payments: This is the most crucial factor, as it accounts for 35% of your score.
- Pay down debt: Aim to keep your credit utilization ratio (the amount of credit you use compared to your total credit limit) below 30%.
- Keep credit accounts open: Longer credit history generally translates to a better score.
- Have a mix of credit accounts: This demonstrates your ability to manage different types of debt.
- Apply for new credit only when needed: Excessive credit inquiries can negatively impact your score.
Remember: Building credit takes time and effort. By understanding the nuances of FICO® Score 9 and implementing these tips, you can steadily improve your credit score and unlock better financial opportunities.
Medical collections are treated differently than other collection types for FICO® Score 9
Medical collections are weighted differently than other collection accounts for FICO® Score 9. Unpaid medical debt was found to be less indicative of creditworthiness—that is, your likelihood of repaying what you owe—and credit risk by FICO® and the Consumer Financial Protection Bureau. Therefore, compared to earlier iterations, unpaid medical debt no longer has as much of an adverse effect on credit score calculations.
This is good news for borrowers who have racked up medical debt due to unpaid bills, but it only impacts credit evaluations or lending decisions based on FICO® Score 9. Medical collections will be handled similarly to other types of collections accounts if the lender is using an earlier version of the FICO® score, such as the FICÔ® Score 8. [2], [4].
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FICO® Score 9 is the second-latest version of the credit scoring model created by the Fair Isaac Corporation. FICO® designed this version to be more predictive of lending risk than earlier versions, even though the score ranges remain the same. [1].
Even though the FICO® Score 9 is an improved version of the FICO® Score 8, lenders still most frequently use the FICԮ Score 8 base score. This means that even if the FICO® Score 9 model may give you a higher credit score, lenders are more likely to still use the older version. [2].
This article explains the specifics of the FICO® Score 9, the factors that affect credit scoring for FICO®, the distinctions between the FICO® Scores 8 and 9, and credit-building advice.
WHAT IS A FICO SCORE || FICO SCORES EXPLAINED || FICO SCORE 8 || FICO SCORE 9
FAQ
What is a good FICO score 9?
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FICO Score Ratings
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Exceptional
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800 to 850
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Very Good
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740 to 799
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Good
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670 to 739
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Fair
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580 to 669
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What is a good FICO auto score?
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Average Auto Loan Balance By FICO® Score Range
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FICO® Score Range
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Average Auto Loan Balance
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Good (670-739)
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$24,750
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Very good (740-799)
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$23,106
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Exceptional (800-850)
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$20,472
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How do I get my FICO auto score 9?
Do auto lenders use FICO 9?
What is FICO score 9?
FICO Score 9 is the second-latest version of the well-known credit scoring model, but it still isn’t being used as widely as its predecessor, the FICO 8. All credit scores come from data in your credit reports, weighed according to proprietary formulas that calculate a score, typically on a 300-850 scale.
What are the different versions of the FICO® Auto Score?
FICO® Auto Score 9 and FICO® Auto Score 8: Introduced in 2014 and 2009, respectively, these versions of the FICO ® Auto Score are available from all three national credit bureaus. FICO® Auto Score 2: Experian provides this version of the FICO ® Auto Score to auto lenders.
What is FICO 9?
FICO 9 is an updated FICO credit scoring model that was introduced to lenders in 2014 and consumers in 2016. Key changes in FICO 9 center on how collection accounts, paid and unpaid, factor into your credit score calculations. Another change is that renters can now use rent payments to build credit history under the FICO 9 model.
What is the 9 XT version of the FICO Auto Score?
The FICO auto score that lenders look at is measured using the 9 XT version of auto score measurement. This version is designed to take into account the past 30 months of credit behavior using data from TransUnion’s CreditVision system. Five major factors contribute to this version of the FICO auto score: