FICO 08 "Beacon 09" Credit
Score Now Available From Equifax
Consumer credit reporting agency
Equifax and FICO have introduced a credit risk product
for lenders and other businesses. Dubbed Beacon 09,
the new Equifax score is based off of Fair Isaac's FICO
08 methodology... Read more
Credit Score Strategies in Recession
As the recession drags on, more people
find their all-important credit scores slipping. The
growing number of foreclosures and credit card delinquencies
are adding to many household’s debt and low credit
scores. Star Tribune article offers some suggestions
what you can do about it. ... Read
more
Credit Line Decrease Lowers Your Credit Score
Recently, many consumers have experienced
their credit card company decreased their credit line.
Credit card profits are being squeezed by rising defaults
and waning spending. As a result, issuers are tightening
the screws on consumers... Read
more
FICO Expansion Score
The FICO Expansion score is a new
credit risk score from Fair Isaac designed specifically
to help lenders extend credit to consumers in new markets.
FICO Expansion Score assesses the
credit risk of consumers who have minimal or no traditional
credit history on file by tapping non-traditional sources
of consumer data, such as payment performance on deposit
accounts, utility account history, and product purchase
payment accounts.. Read
more
How Credit Inquiries Affect Your Credit Score
A credit inquiry typically lowers your score by five points or less. Credit inquiries reduce credit scores because lenders believe that multiple inquiries are associated with high risk of default. Read more
VantageScore and FICO Score: A Comparison
With the introduction of the VantageScore in addition to the FICO score, consumers are confused about the credit score range and about the credit scoring in general. Here are the main differences between the two credit scoring systems. The FICO® score rates an individual’s credit reliability on a scale of 300 to 850, while the VantageScore uses a different numerical scale ranging from 501 to 990. Read more
Rapid Rescoring: How to Improve Credit Score Fast
Rapid rescoring is a special service that
some lenders to utilize. Through rapid rescoring services,
a lender -- on behalf of a borrower in your shoes -- can arrange
for items on a credit report to be altered or changed (as
appropriate) to accurately reflect their true status. Read more
Person to Person Lending and Credit Score
According to Wall Street Journal, Zopa Ltd., a United Kingdom player in the person-to-person online lending market, is starting operations in the U.S. where it will join a handful of other companies, including Prosper Marketplace Inc.'s Prosper.com, that have popularized the market in recent years. Read more
VantageScore Does Not Include Authorized User Information
In the wake of the credit score boosting schemes using authorized credit card user information, Equifax Inc. emphasized in a prepared statement that VantageScore(sm) and the Equifax Risk Score 3.0 are not - and never have been - impacted by the authorized user manipulation. Authorized user information is excluded in calculating both VantageScore and the Equifax Risk Score 3.0. Read more
More Group Segments In New FICO System
As reported, the FICO credit-scoring system is set to undergo a major overhaul in September. Although Fair Isaac Corp., the Minneapolis company that created the FICO score doesn't give out many details about the changes, the company spokesman said there will be more segments in their scoring model. Read more.
Fair Isaac Fights Back On Misuses of Authorized Credit Card Users
Fair Isaac Corp. announced tha it will adjust its FICO credit rating scoring formula to close loopholes. FICO score will no longer consider certain types of credit card accounts, closing a loophole that allowed strangers to coattail on a cardholder's good credit.
This action is intended to protect lenders and FICO scores from abuse of authorized user credit card accounts by a new kind of credit repair service that sells consumer credit card histories to credit applicants in order to purposefully misrepresent the applicants' own credit history to lenders and other businesses. Read more.
How Credit Renting Works
As credit scores take more important role in many parts of our lives, more ideas are popping up everyday to boost our credit scores. Recently, some borrowers with low credit scores are turning to a fast-growing business on the Internet: “Credit Renting” It’s like transplanting the credit DNA of people with excellent payment histories into the credit files of people with poor histories
The companies boost the client’s score by arranging for him/her to be added as an authorized user on several credit cards of people with stellar credit who were paid to allow this coattailing. Read more
Is FICO Score's Value Diminishing?
According to a Reuters report, as subprime mortgage defaults continue to rise, some lenders are questioning the value of Fair Isaac's FICO score, which measures a consumer's ability to pay back a loan.
In the midst of an unprecedented U.S. housing boom banks and lenders paid a lot of attention to credit scores above all else, often overlooking the income and assets of homeowners looking to refinance and potential homeowners looking to purchase a piece of property. Many home buyers were able to get a loan with a credit score and a written, unchecked statement of income. Read more.
FICO Credit Score Formula To Change
Fair Isaac Corp. is tweaking the formulas behind the company's widely used credit scoring system, which helps banks determine whether millions of Americans receive loans and mortgages.
Executives say changes to algorithms and databases, which will take place starting in September, will improve the accuracy of the company's popular FICO score—particularly for so-called "subprime" borrowers and for new immigrants, young people and others who have "thin files" and lack credit history. Read more
Insurers Win at US Supreme Court On Credit Score Use
The Supreme Court ruled in favor of two large insurers, limiting the circumstances under which companies must tell customers their credit ratings are affecting the amount they pay.
The justices said the Fair Credit Reporting Act doesn't require insurers to notify every consumer who is offered something short of the lowest premiums when seeking a rate quote or applying for a policy. Read more
Insurance and credit score
If you're shopping for a new homeowners or auto policy, it helps to know how you look to the insurers. A majority of insurance companies use credit scores to determine both eligibility and rating classification.
Many insurance companies link some behaviors and risks to credit scores. Some insurance companies, for example, use credit scores as part of a rating basis for homeowner's and auto insurance premiums. Some insurers only consider the credit score on the initial application for a policy; others pull your score every three years and re-evaluate the risk. . It is estimated that a low credit score could cost you between 10 and 50 percent more in auto and homeowner's insurance premiums.
Removing Erroneous Information from Your Credit Report
One of the most important steps that you will want to take when working at improving your credit score is removing erroneous information from your credit report. Unfortunately, in this day and age, the majority of credit reports actually do contain erroneous negative information. Therefore, by making sure that this erroneous information is corrected and removed from a credit report, you can advance and increase your credit score.
VantageScore: A New Alternative to the FICO Score
In recent times, an alternative system of
rating a person‘s credit history has been in development
and is now in somewhat limited use. This new system is called
VantageScore. The three major credit bureaus have been involved
in the development of this new system -- and are likely to
make significant use of the news system into the future.
The new system does rely on numerical data
to develop a credit rating for a consumer. The scores go from
501 to 990. However, under this new system, the raw numerical
is transformed into a letter grade -- precisely like the letter
grades used in an academic setting. Consumers, under the VantageScore
protocol, will be given a letter grade in regard to their
credit histories of A, B, C, D, or F. Read more.
What Is a Good Credit Score?
A good credit score is important to your
future borrowing abilities, and could affect whether you get
that new car or even insurance or a new job. Yet only around
30% of Americans know their scores, and 78% of our credit
scores are said to contain errors. So very few likely even
know what a good score is so they can clean up their reports
and raise their number. Read more.
Credit cards for people with bad or no credit: Secured credit cards
Credit Scores in Everyday Life
Companies have found a correlation between credit scores and personal responsibility. Employers can even deny you a job if your credit score is low. A good credit score is more critical now than ever before. Your homeowner's insurance, car insurance, mortgage, so many things in life now are based off credit score. Read more
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