Fair Isaac Corporation FICO 10 Vs 8 Which Matters?

FICO 8 or FICO 10 matters most depending on which model the lender actually runs on your application, because the score they pull drives the decision and the interest rate you receive; if a mortgage bank still uses FICO 8, its older weighting of delinquencies, collections and utilization will dictate your outcome, while an auto‑finance company that has moved to FICO 10 will apply its newer emphasis on recent (12‑24 month) delinquencies, paid collections and credit utilization, which can shift a score by 20‑30 points for the same credit event - a 18‑month late payment might cost you roughly 10 points under FICO 8 but 30 points under FICO 10.

Borrowers with a thin file may see a slight edge with FICO 10 because it can incorporate alternative data, yet the advantage only materialises if the lender has adopted the version; most large mortgage lenders still rely on FICO 8, whereas many auto and credit‑card issuers are transitioning to FICO 10, as shown by recent industry surveys (FICO 10 adoption by lenders). Consequently, the version that matters most is the one your specific lender chooses, a point we'll unpack in the next section on how lenders decide between FICO 8 and FICO 10 for you.

Lenders pick the version that best fits the loan's risk profile, the data they receive, and their internal pricing rules.

1. Product‑specific guidelines - Mortgage desks often stick with FICO 8 because many investors require it, while credit‑card or auto‑loan teams may favor FICO 10 for its newer weighting of recent delinquencies.
2. Bureau‑supplied model - If the lender's bureau partner delivers only FICO 8 scores for a given file, they will use that version; when the bureau offers FICO 10, the lender may switch if the product permits.
3. Impact of recent negatives - When a borrower has a delinquency or collection from the past 12‑24 months, FICO 10 typically penalizes it more heavily, so lenders targeting tighter loss controls may choose FICO 10.
4. Thin‑file considerations - For applicants with three or fewer tradelines, FICO 10 often provides a higher score by giving more weight to on‑time payments, making it attractive to lenders who want to expand into underserved segments.
5. Internal risk strategy - Lenders compare how each model shifts scores across their portfolio; if FICO 10 produces a tighter distribution that aligns with their pricing model, they may adopt it, otherwise they stay with FICO 8.

Most lenders that still rely on the older underwriting models continue to run FICO 8.

• Large national banks (e.g., Bank of America, Wells Fargo) typically stick with FICO 8 for most credit‑card and personal‑loan decisions because their risk platforms have not fully migrated.
• Regional and community banks usually keep using FICO 8, especially on small‑business and mortgage pipelines where the model's handling of delinquencies remains familiar.
• Credit unions often favor FICO 8, valuing its stable treatment of collections and credit utilization for member credit profiles.
• Auto lenders such as Ally and Capital One Auto Finance commonly run FICO 8 for auto‑loan approvals, citing consistent weighting of credit utilization.
• Government‑backed loan programs (FHA, VA) generally require FICO 8 scores for eligibility, though they may accept FICO 10 in limited cases.

FICO 10 typically slashes points for any delinquency that occurred within the last 12‑24 months, with the steepest hits for 30‑ to 90‑day late payments and for accounts that entered collection during that window; a 90‑day delinquency often knocks 40‑90 points off a score, while a fresh collection can drop 50‑80 points. The model also ages the negative faster, so once the delinquency passes the 24‑month mark its impact may shrink to single‑digit points.

FICO 8 treats recent delinquencies less aggressively; a 90‑day late payment usually removes 30‑50 points, and collections older than 12 months still weigh in, though the overall drag rarely exceeds 30 points. Negative items linger with similar weight for up to 24 months, after which the score may recover only gradually.

(See the next section on how FICO 10 scores paid collections differently.)

FICO 10 typically drops a paid collection from the scoring formula after it has been satisfied for 24 months, while FICO 8 continues to count the same account for the full 7‑year reporting period. In the short term (the first 12‑24 months) both versions treat a paid collection similarly, but once the two‑year window closes FICO 10 may eliminate the negative mark, allowing the score to rebound sharply.

This change means that clearing a collection can improve a FICO 10 score faster than a FICO 8 score, especially for borrowers with thin files who rely on every positive update. Lenders still see the original entry, but the model's reduced weighting can lower the overall impact on credit decisions. The timing aligns with the earlier discussion on recent delinquencies, and the next section on credit utilization will show how these models treat other credit behaviors differently.

FICO 10 and FICO 8 both lower scores when you carry high balances, yet FICO 10 typically reacts faster to recent utilization spikes and looks at each revolving account separately, so a sudden jump on one card may shave off more points than under FICO 8, while consistently low usage can boost a score slightly more in the newer model.

• Overall utilization ratio (total balances ÷ total limits) still drives the biggest impact in both versions, usually accounting for 10‑15 % of the score.
• FICO 10 adds an 'account‑level' check: a card above ~30 % utilization may penalize 5‑10 points more than the same ratio in FICO 8.
• Recent changes (12‑24 months) carry extra weight in FICO 10; a rapid increase can cost an additional 5 points, whereas a steady decline may reward up to 5 points.
• Low utilization across all cards (under 10 %) tends to raise scores a few points more in FICO 10 than in FICO 8.
• The utilization effect remains within a typical 5‑15‑point range, so other factors like delinquencies or thin‑file status (discussed next) often dominate the overall score shift.

Below are five borrower scenarios that typically cause scores to shift between FICO 8 and FICO 10:

• Recent delinquencies (12‑24 months) often lower FICO 10 more than FICO 8, because the newer model assigns heavier weight to fresh late‑payment flags.
• Paid collections may improve faster in FICO 10; the score can ignore a settled collection after 24 months, while FICO 8 usually still counts it.
• High credit utilization on revolving accounts (above 30 %) typically harms FICO 10 more aggressively, especially if the balance spikes within the last billing cycle, whereas FICO 8 smooths utilization over a longer period.
• New credit inquiries and recently opened accounts often cause a larger dip in FICO 10, since the model emphasizes fresh credit activity, while FICO 8 spreads the impact over a longer window.
• Thin‑file borrowers may see a higher or lower FICO 10 because the model can pull alternative data (rent, utilities) that FICO 8 ignores, leading to a potentially different score trajectory.

FICO 8 typically benefits a thin‑file borrower more than FICO 10 because the older model relies less on extensive account history and more on the limited data it does have.

FICO 8 emphasizes long‑term payment history and gives modest weight to credit‑utilization, so a handful of on‑time accounts can still produce a decent score. In contrast, FICO 10 may penalize the lack of recent activity or a narrow mix of credit types, which can drag the score lower for those with few tradelines.

Most lenders that still run FICO 8 for thin‑file applicants will likely generate a higher number than they would under FICO 10, though some may use FICO 10 if they have alternative data to supplement the file. For guidance on how thin files are scored, see FICO thin‑file scoring overview.

FICO 10 lowered your score? Act fast and target the factors it weighs differently from FICO 8.

1. Pull your credit reports, flag any delinquencies or collections from the past 12‑24 months, and verify that balances, dates, and statuses are correct.
2. Dispute any errors with the reporting bureaus; corrected items can lift your FICO 10 score almost immediately.
3. Contact the lender and ask whether they will rerun the application with FICO 8, which typically treats recent paid collections and short‑term delinquencies less harshly.
4. Reduce credit utilization below 30 % across all revolving accounts; a lower ratio often improves both models, but FICO 10 is more sensitive to spikes.
5. If you have a thin file, add a small‑balance, on‑time installment loan or a secured credit card; consistent positive activity will benefit future FICO 10 calculations.
6. Monitor the aging of negatives - after 24 months most recent delinquencies lose weight in FICO 10, so patience combined with good payment habits can restore your score naturally.

You can tell a lender used FICO 10 by checking the score version disclosed on your loan estimate or by asking the lender directly for the model they ran. Lenders that use FICO 10 often note it in the paperwork, and the score's behavior can also give clues.

• Review the loan estimate, pre‑approval letter, or credit‑report copy; many institutions list 'FICO 10' (or 'FICO 8') next to the score.
• Ask the loan officer which scoring model was applied; a clear answer should include the version number.
• Look for a 'Score Model' field on any credit‑score report the lender provides; FICO 10 will be labeled as such.
• Notice a larger drop for recent delinquencies (12‑24 months) or for paid collections; FICO 10 typically penalizes these more heavily than FICO 8, so an unexpected dip may indicate its use.
• Use a free FICO‑score lookup tool that identifies the version; some services report whether the score is from FICO 8 or FICO 10.

If the lender cannot confirm the model, consider requesting a manual review or choosing a lender that explicitly states the version, a topic we explore in the next section on what to do if FICO 10 lowers your score. For more on credit‑score disclosures, see what is a FICO score.