U.S. credit bureaus fall after FICO unveils new licensing model

Equifax

02/10/2025 10:32

** Shares of U.S. credit bureaus fall premarket following the launch of a license program for mortgage lending scores that cuts out the companies

** Fair Isaac FICO.N launched a shift in the delivery of FICO scores to the mortgage industry, which gives the option of calculating and distributing scores directly to their customers

** Equifax EFX.N falls 10.6% to $227, while Transunion TRU.N drops 9.6% to $74.69 in premarket trading, UK-based Experian EXPN.L falls 5.6% to 3,472 pence

** The new licensing model stops credit bureaus from marking up their FICO scores, forcing them to directly negotiate with lenders and this could lead to aggressive competition among credit bureaus on price - Jefferies

     ** FICO's new direct-to-reseller licensing cuts out credit bureau markups, which reduces cost for lenders, but this shift pressures credit bureau like EFX and TRU who now faces price competition and may lose revenue from FICO score distribution - Citi

** Up to last close, EFX down 0.4% and TRU down 11.3% YTD

 (Reporting by Avinash P in Bengaluru)

 ((Avinash.P@thomsonreuters.com;))