How do FICO® 8 scores change the score distribution?

One reason there are more consumers today with scores at the high and low ends of the 300-850^® score range for FICO^® Scores is that we have improved the FICO scoring models. The newest version — the FICO 8 Score — is a stronger predictor of future credit risk. Because it is better at separating future good risks from future bad risks, the FICO 8 score redistributes some of the middle of the score distribution curve more appropriately out to the lower and higher score ranges. 

For example, a comparison of the FICO^® 8 score to the prior FICO^® score on recent data reveals an additional 2.2% of the population is now scoring between 300-499. At the other end of the scale, an additional 1.3 % of the population is scoring in the 800-850 score range. Note that these score distributions are based on the same data sample — in other words, these changes don’t reflect increases or decreases in consumer risk, they represent an increased precision in assessing the consumers’ risk.

The distribution changes produced by the updated score version are in line with what we historically see when comparing a newer FICO^® Score version to the prior version on the same data sample.

One reason there are more consumers today with scores at the high and low ends of the 300-850^® score range for FICO^® Scores is that we have improved the FICO scoring models. The newest version — the FICO 8 Score — is a stronger predictor of future credit risk. Because it is better at separating future good risks from future bad risks, the FICO 8 score redistributes some of the middle of the score distribution curve more appropriately out to the lower and higher score ranges. 

For example, a comparison of the FICO^® 8 score to the prior FICO^® score on recent data reveals an additional 2.2% of the population is now scoring between 300-499. At the other end of the scale, an additional 1.3 % of the population is scoring in the 800-850 score range. Note that these score distributions are based on the same data sample — in other words, these changes don’t reflect increases or decreases in consumer risk, they represent an increased precision in assessing the consumers’ risk.

The distribution changes produced by the updated score version are in line with what we historically see when comparing a newer FICO^® Score version to the prior version on the same data sample.

Comments

[Allan]

Rachel, great insight, thanks, Can you tell me why the traditional score ranges that were provided on the old FCRA Credit Score Disclosure and listed on your Product Sheets and score distribution graph you provided now differ from the score ranges on the new Credit Score Exception Notice (Risk Based Pricing regulation) for the same FICO score models? For example FICO 8 is now 341-850 and FICO 4 is 300-839.

[Andrew Jennings]

Allen, thank you for your comment.

I believe you are referring to the difference between the score ranges for the general-risk FICO® Scores used today by the vast majority of lenders and the industry option scores. General risk FICO® Scores fall within the 300-850® score range. This score range was introduced to establish an easy-to-understand, common frame of reference for lenders and consumers. Industry-specific FICO® Scores, such as those for auto lending or bankruptcy prediction, were developed to accommodate the unique qualities of their industry and may have ranges outside the 300-850® score range.

[Kylan]

What percentage of the US population has FICO 8 scores are equal to or above 680?

What about Connecticut, Massachusetts, New York, and New Jersey?

What about for o

Where can I find the data you used to make these charts? Thanks!

[Kyle]

What percent of the U.S. population have FICO scores at or above 680?

What about for specific states like Connecticut, Massachusetts, New York, New Jersey?

[Frederic Huynh]

Kylan -- please check out our most recent FICO® Score distribution post, which should help answer your first question: http://bankinganalyticsblog.fico.com/2012/09/fico-scores-reflect-slow-economic-recovery-.html. Our data comes from one of the national credit reporting agencies, and to date we have published score distributions only for consumers nationally.