FICO is updating its credit score with the release of FICO Score 10 Suite, to be made available this summer.
According to the company
, the new product “gives lenders unparalleled flexibility and predictive power to make more precise lending decisions” by incorporating trended credit bureau data that considers a wider data mix including as account balances for the previous 24 months. FICO added the new offering would result in a 17 percent reduction in mortgage defaults to the version of the FICO Score now being used.
"Clients value the dependability and industry-leading predictive power of the FICO Score," said Jim Wehmann, executive vice president for Scores at FICO. "FICO is a cornerstone for consumer lending decisions. We continuously innovate using the latest, most robust data, while maintaining consistency with previous models to ensure backward compatibility and minimize operational changes required to adopt a new score."
Wehmann added that the creation of the new offering comes in response to feedback from lenders.
"Many lenders want to leverage the most comprehensive data possible to make precise lending decisions," he continued. "By offering a score that taps further into trended data, we're able to give lenders greater flexibility and predictive power, as well as ease of integration."