The FICO Score 9 model, released in 2014, is a more forgiving version of earlier scores that lessens the negative impact of paid collection accounts (ignoring them) and unpaid medical debt, while also incorporating reported rental payment history to help renters build credit, making it potentially fairer for consumers, though FICO 8 remains more widely used by lenders.
The FICO® Score 9 credit scoring model debuted in 2014 and has been widely adopted by lenders, according to FICO. FICO® Score 9 is based on previous FICO credit scoring models, but has some new features: Third-party collection accounts that have been paid will not negatively impact your FICO® Score 9.
FICO® Score 9, is the most current and predictive FICO® Score to date that maintains the same odds-to-score relationship for ease of migration and acceptance. The adoption by hundreds of lenders confirms the predictive power of FICO® Score 9 and the benefits for the market to drive smarter decisions.
Fair Isaac Corporation, or FICO, has created a variety of credit-scoring models that lenders, credit card issuers and other creditors use to gauge a borrower's potential credit risk. FICO's different credit scoring models generally consider ranges from 670 to 739 as “good.”
FICO Score 8 is the most widely used model, while FICO Score 9 offers improvements by ignoring paid collection accounts, reducing the impact of medical debt, and allowing rental payments to build credit, making it potentially more favorable but less common than FICO 8, though scores between versions are generally similar as they share core principles.
You have paid off a collection account–FICO® Score 9 ignores paid collections unlike FICO® Score 8, which still considers them (original amount over $100). You have unpaid medical debt–this version of scoring reduces the impact of unpaid medical collections.
Your FICO Score is a specific, widely-used type of credit score, but it's not the only credit score, as other models (like VantageScore) and lender-specific scores exist, though FICO scores are used in over 90% of lending decisions, making them the most important to know for loans and credit cards. Think of "credit score" as the general term for a risk number, and "FICO Score" as a popular brand, like how "soda" is general and "Coca-Cola" is specific.
Keep balances low on credit cards and other revolving credit: High outstanding debt can negatively affect a credit score. Pay off debt rather than moving it around: The most effective way to improve your credit scores in this area is by paying down your revolving (credit card) debt.
FICO® Scores are updated on a monthly basis, when available.
How does my income affect my credit score? Your income doesn't directly impact your credit score, though how much money you make affects your ability to pay off your loans and debts, which in turn affects your credit score. "Creditworthiness" is often shown through a credit score.
FICO ® Score 8 is the version of the base FICO ® Score model most widely used by lenders. In addition to base FICO Scores, there are also industry-specific FICO Scores such as the FICO Auto Score and the FICO Bankcard Score.
The length of time it will take to improve your credit scores depends on your unique financial situation, but you may see a change as soon as 30 to 45 days after you have taken steps to positively impact your credit reports.
It's partly true: most negative items like late payments and collections are removed from your credit report after about seven years, but the underlying debt often still exists, and bankruptcies (Chapter 7) last 10 years, so your credit isn't entirely "clear" but mostly refreshed from old negatives. The 7-year clock starts from the date of the original delinquency, not when you paid it off or sent to collections, and the debt itself can still be pursued by collectors.
The 2-2-2 credit rule is a guideline for building strong credit, suggesting you should have two active credit accounts (like cards or loans) for at least two years, with consistent on-time payments for those two years, often with a minimum credit limit of $2,000 per account, to demonstrate financial responsibility to lenders, especially for mortgages. It's a benchmark to show you can handle credit well over time, reducing lender risk and improving approval odds for major loans.
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
Ways to improve your credit score
Paying your loans on time. Not getting too close to your credit limit. Having a long credit history. Making sure your credit report doesn't have errors.