myFICO Survey: Consumers Concerned About Credit Card Debt, Plan Conservative Holiday Spending

SAN JOSE—December 4, 2012— myFICO, the consumer division of FICO (NYSE:FICO), the company that invented the FICO^® Score, revealed that credit card debt continues to be consumers’ biggest financial worry as the new year approaches. According to a November survey, nearly one third of consumers are cutting back on holiday spending and plan to practice conservative credit behaviors this year. Only 20 percent will consider opening new credit card accounts, and approximately 65 percent expect to charge less than $500 on their credit cards – a figure that most consider moderate and within their budget.

Credit Card Use and Repayment Time to Increase in 2012
Approximately half plan to use credit cards exclusively for all their holiday purchases, while nearly a third will reserve credit cards only for more expensive gifts. However, 80 percent of consumers will use a fraction of their credit limit - less than 25 percent - which tends to bode well for a consumer's FICO Score. "Keeping revolving credit low can have a positive impact on an individual's credit score, since this accounts for almost 30 percent of a typical score," said Anthony Sprauve, spokesperson for myFICO.
Nearly a quarter of respondents will need more than three months to pay off their 2012 holiday expenses, compared to 18 percent in a similar survey conducted in 2010.
"While consumers are using credit cards more this year, it's important not to get carried away," said Sprauve. "Payment history is the most influential factor when determining an individual's FICO Score; therefore it's critical to pay at least the minimum amount on all credit cards every billing cycle."

Concern about Fraud and Credit Score Impact
According to the myFICO holiday spending survey, about 14 percent of respondents indicated they are concerned about the effect of holiday spending on their FICO Score. Additionally, 62 percent are concerned about fraud or identity theft during the holidays; surprisingly, 20 percent of these individuals take no steps to protect themselves.

“Tools such as Score Watch offered by myFICO can be used by an individual to detect important changes to that individual’s credit report, allowing them to become aware of fraudulent charges or inaccuracies, so they can take immediate corrective action to minimize negative impacts to their FICO Score,” said Sprauve. “Regularly monitoring your bank statement and credit report for errors can be instrumental for identifying fraudulent charges and maintaining an accurate credit report.”

About myFICO
myFICO is the consumer division of FICO, the company that invented the FICO^® Score, a credit risk score which serves as a de facto credit score used by the vast majority of lenders in the United States. myFICO offers informative free credit educational information that helps people understand actions they can take to achieve and protect their overall financial health. www.myfico.com

Über FICO
FICO (NYSE:FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company’s groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO’s innovative solutions include the FICO^® Score — the standard measure of consumer credit risk in the United States — along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world’s top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through www.myFICO.com.

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Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company's Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2012. If any of these risks or uncertainties materializes, FICO's results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.

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