NextGen Score

FICO NextGen Risk Scores

NextGen scores, also called Next Generation scores were introduced to the credit market in 2001 by FICO. They were designed to compete with their own product, the traditional FICO score along with competitors VantageScore and the ever growing number of FAKO scores available to both consumers and lenders.

2004 NextGen Research

In 2004 FICO released some research data about the NextGen score. Their research claims that credit card issuers could earn an extra $9 per account score whilst increasing the number of consumers approved for cards by 4.4%. This was assuming that every “good” account was worth $175 per 18 months and every charge-off/bankruptcy cost the issuer $3,500.

FICO® Scores FICO® Nextgen Scores % change
% Above Cut Off 68.0% 71% 4.4%
% of Approved % of Approved
Goods 87.5% 87.5% 0%
Bads (90+ days or worse) 2.7% 2.4% -11.1%
Charge-off or worse 2.2% 1.9% -13.6%
Bankrupts 1.5% 1.3% -13.3%

The above table is taken directly from the PDF research paper. They also released a PDF on why credit companies should convert to the new score. Despite the research and considerable amount of time and money put into the new score, lenders were hesitant to start using the new score and it’s now almost never used by creditors.

It’s also not available to individuals.

Other Names For NextGen Scores

Each of the three credit bureaus rebranded the NextGen score with the following names:

  • Experian: Experian/FICO Advanced Risk Score 1.0
  • TransUnion: FICO Risk Score NextGen (formerly known as Precision)
  • Equifax: Pinnacle 1.0


In 2003 there were some modifications made to the NextGen scores, which resulted in the following name changes:

  • Experian: Experian/FICO Advanced Risk Score 2.0
  • TransUnion: FICO Risk Score NextGen 03 (formerly known as Precision II)
  • Equifax: Pinnacle 2.0

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