FICO Upgrades Credit Scoring Process

Jacob Passy writes in a January 26, 2020 article in that upcoming changes in FICO’s credit scoring system will have an impact on many consumers and lenders.

Credit unions use credit scoring systems of one type or another to approve or price loans. Changes in a present borrower’s score could indicate an improving or digressing financial situation. Credit unions need to stay up to date with changes taking place regarding their credit score providers and prepare for the impacts such changes could have on their operations and profitability.

TCT’s Risk Based Loan Pricing tool and Credit Migration tool are mandatory for credit unions that effectively use credit scoring to price and manage the risk in their loan portfolios..