New FICO System!

It might be easier than ever to get a new car from Honda Savannah because the FICO scoring system is changing so that it will be easier for dealerships to finance more buyers.  Fair Isaac Corp. is the creator of the sometimes dreaded credit score, but the new FICO 8 means that this eighth generation scoring system will be more accurate and helpful to consumers and sellers as well.  That is good news if you had your heart set on a new set of wheels from Sarasota Used Cars or even something a bit luxurious from Arizona VW.  Credit scores have been around from Fair Isaac Corp. for about the past twenty years or so, and having eight new versions in that time shows that credit is by no means a stagnant system.

This new system is aimed at guessing and predicting risk.  This means that when you go to buy a car and need to use financing services from a lender, there should be a lower cutoff score for what places frequently term "well qualified buyers." This new system is reportedly supposed to be about 15% more accurate in predicting the likelihood that someone will default on a loan or payments.  Part of this new scoring has to do with how computer oriented our society has become.  There is more payment history being generated on a daily basis, so consumer credit scores are able to change more frequently than in the past.

While the new system is still under review by select lenders, but can be used by any lenders if they choose.  Currently 2,500 banks and financial institutions are using the new system.  Soon, the old system will be entirely phased out.  The score will still be from 300 to 850.  High risk will be those people that fall between 300 and 599 while low risk will be 800 to 850.