FICO 08 and Authorized User

Below is a press release from Fair Isaac titled: “Fair Isaac Innovation Will Restore Authorized User Accounts to Calculation of FICO 08 Scores” on July 31, 2008.  Hold onto your Authorized User hat, here goes:

“July 31, 2008 – (Minneapolis, Minnesota, USA) – Fair Isaac Corp.(NYSE:FIC), the leading provider of analytics and decision management technology, announced today that its scientists have discovered a way to restore authorized user credit accounts to the calculation of FICO® 08 credit scores while materially reducing any potential impact to the score from tampering. Fair Isaac is now adding the patent-pending technology advance to its FICO® 08 formula. The company estimates that more than 50 million U.S. consumers are legitimate authorized users on another person’s credit card.

“The hallmarks of FICO scores have been quality and innovation, and this technology advance is a great example,” said Lisa Nelson, vice president of Global Scoring for Fair Isaac. “This breakthrough resolves an industry problem that we know has perplexed lenders and concerned regulators. We have developed technology that will reduce any impact on the FICO 08 score from intentional tampering, while allowing the scores of spouses and other genuine authorized users to benefit from their shared credit experience. This kind of innovation is why Fair Isaac’s analytic scientists are regarded as the best in the world.”

Adding the innovation to the FICO® 08 formula is expected to take Fair Isaac several weeks. The company is working closely with credit reporting agencies to bring the new FICO® 08 score to market as quickly as possible.”

Source – Fair Isaac Press Release July 31, 2008

“Pay no attention to that man behind the curtain.”

Source – Wizard of Oz 1939