[!IMPORTANT] Industry Standard: While FICO 9 offers several consumer-friendly updates, FICO Score 8 remains the most widely used model for most credit card approval decisions.
FICO Score 9 is an updated version of the FICO credit scoring model released in 2014. While many lenders still rely on FICO 8, FICO 9 is gaining traction, particularly because of its more nuanced approach to collections and rental data.
Key Innovations in FICO 9 Medical Collections: FICO 9 distinguishes medical collections from other types of debt. Medical balances have a significantly lower negative impact on your score than in previous versions. Paid Collections: If a collection account has been paid in full, FICO 9 ignores it completely. In earlier versions (like FICO 8), even a paid collection could linger and depress your score. Rental History: FICO 9 is designed to incorporate positive rental history into your score, provided the data is reported to the credit bureaus. This makes it easier for “thin file” borrowers to build a footprint. Why Lenders Use It Lenders who use FICO 9 are often looking for a more “fair” assessment of consumers who may have had medical emergencies but are otherwise responsible with their credit. It is widely used by retailers and some credit card issuers as a secondary or primary score.
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