Experian dumps Fair Isaac

Even more changes are up with your FICO score. In mid January Experian sent a Dear John letter to Fair Isaac with intent to end their 6-year relationship with myFICO.com. This doesn’t mean the Fair Isaac won’t be using Experian data to calculate credit scores. It means that Experian’s reports will not be available to consumers through myFICO.com. However, Fair Isaac will continue to provide lenders data from the three reporting agencies: TransUnion, Equifax and Experian.

A Fair Isaac statement put it this way:
  • This action by Experian is specific to our consumer business unit.
  • Fair Isaac is dedicated to offering FICO® Scores to financial institutions via all three of our bureau partners to provide the most independent and fair representation of a consumer’s credit picture.
  • Experian recently recommitted to continue offering FICO® Scores to its lending clients.
  • To meet consumers’ credit empowerment demands, Fair Isaac will continue to offer both Equifax and TransUnion credit management services through our myFICO.com web site.

After February 13, 2009, Experian FICO® scores and credit reports will no longer be available through myFICO. This affects three of Fair Isaac’s products:

  1. Suze Orman’s FICO® Kit
  2. FICO® Credit Complete
  3. FICO® Standard

Experian has not announced plans to make FICO scores available to consumers. Current law states that consumers are entitled to reports from all three credit bureaus, but that is not the same as your credit score.

You might want to log on to myFICO before Feb. 14th and get your credit score that includes the Experian data–especially if you looking at getting a loan anytime soon. Experian will continue to work with Fair Isaac to provide lenders with the FICO® scores they use in their lending decisions. Not sure what future plans Experian has or why they terminated the FICO contract, but for now the announcement puts consumers as the big losers.

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