Using FICO® Score 10 T can expand mortgage approval rates by 5% relative to versions most commonly in use today, without adding incremental risk.

Mortgage approval rates can be expanded by 5% without adding incremental risk relative to the current score in use.

FICO estimates delinquency rates could be reduced for mortgage originations by 17% at a cutoff of 680 as compared to prior FICO® Scores.

How might FICO 10 affect your score?

Your score is most likely to drop when using the FICO 10 scoring models if:

You took out a personal loan to consolidate credit card bills, but now your card balances are up again or it appears you have applied for additional credit.

You are using credit cards to get by — and you just can’t seem to whittle the balances down or your balances are growing.

You have missed a payment — the penalty for going 30 days past due will be even harsher than it is under previous FICO scoring models.

On the other hand, some people could see their scores rise by 20 points or more. Your score is most likely to rise if you have been penalized for occasional high balances. Shellenberger gave an example: If you typically vacation in July and put airline tickets, hotel and meals on a credit card — and then pay it off — the trended data won’t penalize you as much. It looks at balances over time and sees you bringing a temporarily high balance down. Read More…