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>>One exception may be small community banks and credit unions who may not be able to afford huge scoring models.

i dont think i understand what youre saying. do you have underwriting experience? every institution i have ever dealt with, except one which got out of the auto finance business entirely after sustaining huge losses (us bank, formerly first bank) employs professional credit analysts who look at every application. some apps are easier to decision than others, and fico scores help with the process, but they dont eliminate the other steps.

Employing a credit analyst and speculating why a certain person has certain reasons for his/her score to be not higher than it is, are totally different things. Credit analysts look at the person's credit history and other factors with the goal of determining how likely they are to repay the loan. If, for example, one of the main reasons says that too much credit is available to the person, it is for a good reason not in the credit analyst's job description to speculate why. The only things they need to know is that this means the person is a higher risk, and how much higher. The only options to get the loan at better terms are to lower the available credit, or to change other considered factors. If you do not want to change anything, accept this offer or shop for a better deal with a lender that will accept higher risk, or look at your factors differently.

What I meant by huge scoring models is not the report and the score, of course, but all the additional analysis that creditors build on top of and in addition to FICO. Capital One or Bank of America will certainly have more extensive proprietary database of past account performance. And I am sure they analyze that data to death because it pays big time to estimate the risks as correctly as possible.

They have to share some of this info with Fair Isaac to constantly improve the formula for FICO, but FICO does not consider some of the factors. Creditors do, so they can study that data more closely.

Smaller banks might not have access to such huge information and they need to hire another company and/or supplement FICO by more subjective and individual analysis of their own. That is a good thing for people who do not have a glamorous score to dazzle creditors with, but have good reasons to explain why, or have a long term positive relation with their banks. Big creditors are not motivated to listen.

By the way, being such a big bank, it's funny how Chase's logo is "The right relationship is everything". But that's another story...

Answering your question, no, I am not an underwriter. Just extremely interested in credit and banking industry.
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