New credit-scoring model

FICO will launch a new scoring model in the summer, targeting lenders’ concerns about credit score consistency across three major credit bureaus. (Alistair Berg, Getty Images / March 18, 2014)

 How did the recession affect your spending habits? Soon, for better or worse, you might see your financial behavior reflected in your FICO score.

FICO, the data company that devised the credit-scoring formulas most often used by mortgage and auto lenders, credit card companies, etc., plans to release a new scoring model this summer that it promises will analyze credit risk more correctly.

FICO said the new model, the first major change in six years, is intended to address lenders’ concerns about credit score consistency across the three major credit bureaus.

A FICO spokesman told National Mortgage News that the new formula, called FICO Score9, will analyze post-recession data in terms of how a consumer’s spending and credit habits may have changed, compared with six years ago. Consumers whose scores were good pre-recession will score slightly better in the new version, he told the trade journal.