Fair Isaac analysts have created a way to restore authorized user accounts to the calculation of FICO® scores 08, while materially reducing any potential impact to the score from tampering. Fair Isaac is now adding the patent-pending technology advance to its FICO® score formula. Fair Isaac estimates that more than 50 million US 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.”

Helps lenders address regulatory requirement

Since its introduction in 1989, the FICO® score has helped lenders comply with an important federal regulation by automatically including authorized user accounts in the score’s assessment of risk. Under the Equal Credit Opportunity Act (ECOA), when lenders assess a spouse’s credit risk they are required by law to consider the credit history of accounts that both spouses are permitted to use. With the introduction of Fair Isaac’s innovation to the formula, the FICO® score continues to help lenders meet this legal requirement. This information is not intended to be legal advice; lenders are encouraged to check with their own legal counsel to determine how best to meet regulatory compliance requirements.

Businesses seeking more information about the FICO® score 08 are welcome to direct inquiries to scoringsolutions@fairisaac.com. Fair Isaac will continue to publish news about the score in future issues of ViewPoints.