Intensifying Credit Score Competition Weighs on FICO

17 days ago

Carmen Rhiniki

"Also shares of FICO. I mean this is a company that we cant stop looking at especially the back and forth that were seeing between FICO and its private competitor advantage score. Whats going on? What happened today? We are seeing even more of that playing out today. So FICO FICO shares down almost 10% worst day since the end of May. Equifax said that its Vantage score 4.0 service. Its going to offer mortgage credit scores at $4.50 through the end of 2027. And thats more than 50% cheaper than what FICO is currently offering. So basically, its responding to their monopoly like doubling of their mortgage credit score prices to $10 in 2026. So really seeing that rivalry play out. It was a really big decline in in FICO shares which had been climbing up until today."

The discussion on FICO highlights a nearly 10% drop in share price, driven by competitive pressure from Equifax whose Vantage Score service is offering significantly cheaper mortgage credit scores. The rivalry is described in terms of pricing strategies, with FICO facing challenges after raising its prices, thereby intensifying the debate over its monopoly in the credit scoring market. This competitive dynamic has led to a bearish sentiment for FICO.

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