FICO scores, which range from 300 to 850, are used by about 90% of lenders to measure credit risk|Coolcaesar|CC BY-SA 4.0

Fair Isaac, the company behind the FICO score, saw its shares jump nearly 18% on Thursday, their biggest one-day gain in three years. 

The surge came after the firm unveiled a new mortgage pricing plan that allows lenders to bypass credit bureaus. Instead, FICO will now license its scores directly to mortgage resellers, who can distribute them to lenders and borrowers.

Industry reaction
FICO scores, which range from 300 to 850, are used by about 90% of lenders to measure credit risk. 

Under the new system, lenders can choose between two pricing options, eliminating the 100% mark-ups typically added by credit bureaus.

CEO Will Lansing said the shift puts “pricing model choice” directly in lenders’ hands. Shares of Experian, TransUnion, and Equifax fell between 4% and 10% on the news, as investors anticipated less reliance on their services.

Regulator’s view
Analysts predict the change will improve Fair Isaac’s margins while reshaping the credit bureau landscape. 

Federal Housing Finance Agency director Bill Pulte praised the move as a “creative solution” that could make lending fairer, safer, and more competitive for US consumers.