Latest news with #FairIsaac
Yahoo
20-07-2025
- Business
- Yahoo
FICO To Roll Out New Scores to Reflect Your "Buy Now, Pay Later" Habits, Impacting Millions of Americans' Credit
"Buy now, pay later"users may hurt their credit if they don't pay back those loans on time. Credit score overseer Fair Isaac (NASDAQ:FICO) announced new scoring models last month that will evaluate BNPL usage when determining credit worthiness. The program, scheduled to roll out this fall may help some folks gain access to better loan terms but failing to pay on time is going to hurt. The processing services let retailers provide installment loans at the point of sale so buyers can spread out payments. The loans may have no interest or service fees, potentially encouraging customers to overspend. Not surprisingly, a Bankrate survey released in May showed that about 'half of buy now, pay later users have experienced issues like overspending and missing payments.' Don't Miss: —with up to 120% bonus shares—before this Uber-style disruption hits the public markets $100k+ in investable assets? – no cost, no obligation. FICO will include BNPL data on upgraded Score 10 and Score 10 T credit models. It wants the new data to provide lenders with "greater visibility into consumers' repayment behaviors, enabling a more comprehensive view of their credit readiness." FICO Vice President and General Manager of B2B Scores Julie May emphasized the impact on young buyers, noting it will "more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products." Using FICO's Score 10 to roll out the initiative has raised some eyebrows because it won't be included in Score 8, currently the most widely used credit scoring product. In fact, FICO modeling is now up to Score 16 but, like the iPhone, older versions remain broadly popular due to long credit cycles and the need for lenders to invest, train and incorporate newer processes. Trending: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Credit agencies have gathered BNPL loan activity for several years now. But this is a largely unregulated industry and not all payment processors report these transactions. So, a substantial chunk of U.S. lending activity may be missing from current data. FICO's new models will try to fill these gaps but there could be unintended consequences because, according to the survey, nearly one-third of Americans have used the service. Bankrate Senior Industry Analyst Ted Rossman told CNN that young folks with limited credit histories are frequent users, and those most vulnerable to credit downgrades. Given survey results, new models may amplify negative credit scores of those overspending and missing payments. Of course, it's hoped this credit activity will boost scores if debts are paid on time and in promises to aggregate multiple BNPL loans, but dangers abound if old school installment loan scoring seeps into the new models. Its common knowledge that borrowing up to your credit card limit is bad for your score because it signals financial stress. Now consider a young buyer who takes multiple BNPL loans at the same time. With traditional scoring, it looks like the customer is maxing out multiple short-term credit lines, raising all sorts of red flags. Rossman believes that customers who pay their debts promptly should be fine under the new rules, but hedges his bets despite FICO assurances. "Things like frequent opening and closing of accounts would be disastrous for your credit score," he told CNN. "With Buy Now, Pay Later, you're doing that every few weeks or even every few days." Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? FAIR ISAAC (FICO): Free Stock Analysis Report This article FICO To Roll Out New Scores to Reflect Your "Buy Now, Pay Later" Habits, Impacting Millions of Americans' Credit originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Globe and Mail
16-07-2025
- Business
- Globe and Mail
Fair Isaac Corporation Announces Date for Reporting of Third Quarter Fiscal 2025 Financial Results
Global analytics software leader, FICO, will announce its third quarter fiscal 2025 results on July 30, 2025, after the market closes and will host a conference call on July 30 th at 5:00 p.m. Eastern time (4:00 p.m. Central/ 2:00 p.m. Pacific). This call will be webcast and can be accessed at FICO's website at A replay of the webcast will be available at our Event Calendar under Past Events through July 30, 2026. About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at Join the conversation at & FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries. Statement Concerning Forward-Looking Information Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of COVID-19 on macroeconomic conditions and FICO's business, operations and personnel, the success of the Company's Decision Management strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions, or divestitures, and material adverse developments in global economic conditions or in the markets we serve. Additional information on these risks and uncertainties and other factors that could affect FICO's future results are described from time to time in FICO's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2024 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO's results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.
Forbes
16-07-2025
- Business
- Forbes
Buy, Sell, or Hold Fair Isaac Stock?
CHONGQING, CHINA - APRIL 23: In this photo illustration, the logo of Fair Isaac Corporation (FICO) ... More is displayed on a smartphone screen, with the company's latest stock price performance and candlestick chart visible in the background, on April 23, 2025, in Chongqing, China. (Photo illustration by) Fair Isaac (NYSE:FICO) shares fell by almost 17% in the last week, following a significant regulatory announcement. The decline was sparked when the Federal Housing Finance Agency (FHFA) revealed that Fannie Mae and Freddie Mac will now recognize VantageScore 4.0 along with traditional FICO scores for mortgage underwriting. This breaks FICO's long-held monopoly, as these two government-sponsored entities support approximately half of all U.S. mortgages. This action is perceived as a possible challenge to FICO's market dominance and its forthcoming pricing power in the credit scoring sector. So, is this actually a long-term danger for FICO stock, or is the market reaction excessive? Although Vantage Score has received approval, it is anticipated that most lenders will keep using FICO scores due to their established trust, data models, and seamless integration with current underwriting frameworks. Mortgage lending is highly sensitive to risk, and lenders are expected to be hesitant about making an immediate change to a newer model. Furthermore, the existing use of tri-merge credit reports – which aggregate information from all three major credit bureaus: Experian, Equifax, and TransUnion – continues to depend on FICO scores. This should aid in maintaining demand for FICO's scoring products. On a separate note, cryptocurrencies have begun to show movement again. See – Will The Rally In XRP Price Continue? Does the Decline Render FICO Stock Worth Buying? Based on the amount you pay for each dollar of sales or profit, FICO stock still appears to be pricey when compared to the wider market. Fair Isaac has a price-to-sales (P/S) ratio of 21.8x compared to a figure of 3.1x for the S&P 500. Additionally, it has a price-to-earnings (P/E) ratio of 71x versus the benchmark's 26.9x. Nevertheless, our evaluation of Fair Isaac across key aspects of Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company shows robust operational performance and financial health, as described below. That said, if you're looking for potential gains with less volatility than individual stocks, the Trefis High Quality portfolio offers an alternative – having surpassed the S&P 500 and achieving returns over 91% since its inception. Fair Isaac's Revenues have experienced significant growth in recent years, with its top-line expanding at an average rate of 10.3% over the past 3 years compared to an increase of 5.5% for the S&P 500. Moreover, its quarterly revenues surged by 15.2% to $440 million in the latest quarter, rising from $382 million a year prior, contrasted with a 4.8% increase for the S&P 500. Fair Isaac's profitability remains outstanding. Over the last four quarters, Fair Isaac's Net Income was $544 million, yielding a net income margin of 30.7%, significantly surpassing the S&P 500 average of 11.6%. This showcases the operational efficiency and pricing authority of its Scores segment. Fair Isaac's balance sheet appears solid, with the company maintaining a Debt-to-Equity Ratio of 6.3% (compared to 19.4% for the S&P 500). Cash and cash equivalents make up $184 million of the $1.7 billion in Total Assets for Fair Isaac. This results in a robust Cash-to-Assets Ratio of 10.8%. FICO stock has shown a performance that was slightly better than the benchmark S&P 500 index during several recent downturns. Not particularly pleased with the still high valuation of FICO stock? The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has a history of consistently outperforming the S&P 500 over the past 4-year period. Why is that? Collectively, HQ Portfolio stocks have delivered superior returns with lower risk compared to the benchmark index; providing a smoother ride, as seen in HQ Portfolio performance metrics.
Yahoo
14-07-2025
- Business
- Yahoo
Pulte's Social Media Posts Become Must-Follow for Stock Traders
(Bloomberg) — For years, investors have found themselves at the whim of President Donald Trump's social-media posts. Now, traders are being forced to pay attention to an unlikely official: Federal Housing Finance Agency head Bill Pulte. Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests Stocks have swung wildly on Pulte's comments as he opines on everything from credit score pricing, to cryptocurrencies as mortgage assets, and even the job security of Federal Reserve Chair Jerome Powell. Sometimes preceded by cryptic teasers, his online comments have fueled the worst one-day drop in half a decade for credit-score provider Fair Isaac Corp. (FICO), multiple slumps in credit bureau stocks and even a brief drip in the entire S&P 500 Index on Friday. His market moving ability has 'thrust a normally obscure government official into the forefront of business news,' said Steve Sosnick, chief strategist at Interactive Brokers. Friday's market pullback, while brief, saw the S&P 500 quickly drop about 0.2% in a matter of minutes after Pulte posted on X that he was 'encouraged by reports' that Powell is considering resigning, without referencing any specific report. No such verified reports have emerged. Pulte is no stranger to courting online controversy: Before joining the FHFA, the investor and self-proclaimed online philanthropist had partaken in multiple feuds on social media site X. He was also known for using his account to give cash to followers. Senator Elizabeth Warren questioned Pulte's presence on X as the Senate Committee on Banking, Housing, and Urban Affairs considered the nomination to his current job. Warren in a letter wrote that Pulte appeared to have deleted more than 25,000 posts from his account days after the 2024 presidential election, leaving up fewer than 250. Pulte's position in government has given his words new weight. Fair Isaac slid 16% on May 21 after Pulte questioned credit score pricing in a series of posts on X, the biggest decline in the stock since March 2020. The selloff, which followed comments from Pulte on credit scores at a conference, wiped nearly $7.8 billion off the market value of the FICO score provider. Shares of credit bureaus TransUnion (TRU) and Equifax Inc. (EFX) also fell after those comments. The stocks were again rattled last month when Pulte said on X that he was doing a 'full scale review' of credit bureaus, and Fair Isaac slid again after he said last week that Fannie Mae and Freddie Mac will allow lenders to use a different credit score to 'increase competition' in the ecosystem. In April, shares of Fannie Mae and Freddie Mac spiked more than 14% after Pulte posted on X that 'news on Fannie Mae coming shortly.' About 20 minutes later, Pulte posted again saying that Omeed Malik, co-founder of 1789 Capital, would be joining the board of Fannie Mae. Shares of both Fannie and Freddie quickly pared their advances after the second post, cutting their gains roughly in half. Pulte isn't the only Trump administration official making waves in the stock market either. Both Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have repeatedly sent stocks higher and lower during interviews in recent months. Trump, speaking at a White House Faith Office luncheon on Monday praised Bessent for 'doing a fantastic job.' 'He goes on television and he calms the market,' Trump said. 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot 'The Turbulence Is Brutal': Four Shark Tank Businesses on Tariffs Trump's Cuts Are Making Federal Data Disappear Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
10-07-2025
- Business
- CNBC
Cramer's Lightning Round: SoFi is a buy
SoFi: "[buy, buy, buy!]" American Express: "Goes higher!" Fair Isaac: "I'm going to stick my neck out and say that I think FICO is ok here." Lincoln Electric: "I think you got to wait for a pullback." Okta: "I like Okta...I'd rather own CrowdStrike." Campbell's: "I think you're fine to be able to buy some." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
