New credit scores intended to make identifying bad risks easier make their debut today, with TransUnion taking the lead in offering “FICO 08” metrics, reports the Wall Street Journal. The new formula is more forgiving of one-time lapses than its predecessors, but popularizing it may take years, according to developer Fair Isaac Corp.
The company said the new report is is 15% more accurate than before. Creditworthiness still will be represented by scores from 300 to 850 (higher is better). Consumers with good credit should see scores increase slightly. Equifax will offer the scores starting in the second quarter. The third major credit bureau, Experian, is in litigation with Fair Isaac and declined comment.