What does the new FICO Score 10 mean to you?

Different lenders use different score models for different lending decisions.

FICO's newly announced FICO® Score 10 Suite is getting a lot of attention and news coverage. Let's cut to the chase:

What does this new score model mean to you now?

Short term answer for all borrowers: “Nothing.”
Medium term answer for all borrowers: “Maybe, in a few years, depends on what you're using credit for, we’ll talk…”
Short to medium term answer for home buyers and mortgage lenders: “Most likely nothing.”

What? Why?

Historically, lenders have been slow to adopt new models from FICO®. If the lender doesn’t use it, it means nothing to the borrower.

The new FICO® model version is number 10, the most popular version in use is 8 (from 2008) and for mortgage lending Versions 2, 3 and 5 (1998-2004) are used (because they are mandated by Fannie Mae and Freddie Mac).

For home loans, when you see headlines like: "Fannie Mae to Adopt New Credit Score Model," that's the time to pay attention.

What's my credit score confusion

Different FICO score models are used by different lenders for different purposes (auto, credit card, mortgage). Adding more confusion are the score models developed and promoted by the credit bureaus; these are almost always higher than the lender’s score and cause the most disappointment when borrowers get their mortgage score from a loan officer. See: “Free Credit Score Can Confuse Homebuyers.”