FICO released three new methods to score credit reports. The following scores will now be available to borrowers looking to purchase different commodities.

The FICO Mortgage Score is similar to the current version of the FICO score used by Equifax, called BEACON. The new FICO Mortgage Score was developed due to the need for mortgage lenders to have a more accurate way to assess risk for potential mortgage borrowers. The score looks at specific credit risks that correlate to mortgage borrowing and repayments, rather than just an overall credit rating based on all the credit accounts a consumer has held.

This score is also known as an “Industry Option” score, meaning the standard FICO score is used as a basis and then a variety of other factors are then taken into consideration to determine the creditworthiness for a specific kind of loan. In this case, it is used strictly for mortgage loans.

If a borrower had a FICO score from Equifax of 750, which is a bit on the low side, but previous mortgages have been paid on time and in full, the mortgage portion of the score will actually raise the scoring used for a new mortgage. The reasoning is that regardless of an overall credit rating, someone with a history of timely mortgage payments is going to be much less of a risk to a lender than someone with a better rating, but poor mortgage payment history.

The variations of FICO scores do not stop there. Similarly, FICO is releasing a score that will be available to assess risk for auto loans and lenders as well. The credit reporting agency TransUnion will provide the FICO Auto Score, another “Industry Option” score, for borrowers looking to buy a new or used car, or are looking to refinance their current car loan.

The new auto score is expected to be far more accurate to assess the level of risk, and hopefully cut down on future delinquent payments. According to FICO auto lenders could cut down their potential losses by 5 to 15% using the new assessment tool available to them.

In a risky economic environment, being able to predict losses is extremely necessary. The FICO Auto Score should allow more loans to be made with confidence in a stagnant automobile market. It should also mean that lenders who have health balance sheets to take a bit more risk, since they will be able to more accurately tell which loans are likely to default, and by how much.

The new scores outlined above are also the models for the most recent version of the “Industry Option” score, specifically, the FICO Bankcard Score. This score will be utilized by companies that issue credit cards, such as stores, banks, and even investment houses that offer retail banking services. Again, a score similar to the TransUnion score will be the basis for the FICO Bankcard score, and then a review of a consumer’s past credit card habits will contribute to the raising or lowering of points.

Credit card issuers will most likely use this new score in their rating system for determining whether or not to extend credit and in what amount to applicants. Because of the popularity of credit cards, many being issued by a consumer’s favorite store, the need for accurate credit rating is needed. It is predicted that the FICO Bankcard score will be among the most used credit score in the future.

Similar to the FICO Mortgage and Auto scores, the Bankcard score will identify the specific risk of extending credit card credit and in some cases, increase the accurate assessment of risk anywhere from 6 to 12%. A major credit card issuer may have up to 30 million credit cards in circulation, so the improvement in predicting loss will have a significant impact on the industry.