Post by forest on Apr 18, 2009 9:07:39 GMT -8
The way consumer credit scores are calculated has changed.
However, I have also read that only TransUnion is using FICO 08 and it is only offered to lenders, not consumers. Equifax and Experian are not currently offering FICO 08 yet. Experian has stated that they will not install FICO 08 and in February, they stopped allowing consumers to purchase their version of the FICO score.
Quote:
Little Slip-Ups Hurt Less
Debts less than $100 will not have as large a negative impact on a consumer’s score.
Looking at the Big Picture
FICO 08 will take a more comprehensive look at a consumer’s credit history. This way, one negative aspect of a person’s credit history will not necessarily destroy their credit rating.
Restrictions on Piggybacking.
Piggybacking is when a credit card holder with good credit let’s another person, perhaps with lousy or no credit, be an authorized user of the card. The good credit of the card holder would then have a positive impact on the other user’s credit. In order to reduce fraud associated with piggybacking, FICO 08 restricts piggybacking to only the card holder’s family.
Less Available Credit and Closing Accounts will Hurt More
Before FICO 08, if a consumer had a history of using most of his or her available credit, it had a negative impact on their score; now that impact will be even larger. Also, having too few open accounts, a number of inactive accounts or closing accounts will have a more significant negative impact.
Varied Lines of Credit will Help
Having varied lines of credit—such as a mortgage, a car loan, or school loans in addition to credit cards—will have a positive affect on a credit score.
www.keyetv.com/news/local/story/Your-money-is-on-the-line-with-credit-score/1dF5wuEA9E--xhlqyNGMUQ.cspx?rss=909
Credit scoring equation changing
www.sanmarcosrecord.com/local/local_story_099122937.html
Consumers should benefit as FICO creator unveils new scoring model
www.mywesttexas.com/articles/2009/03/27/news/opinion/columns/bbb_3_26.txt
FICO score changes planned to help boost credit scores
www.abc4.com/content/news/top%20stories/story/FICO-score-changes-planned-to-help-boost-credit/RI9CwFWUckGfaICjSEkI1A.cspx?rss=20
a free credit report once every 12 months, and people can do so at: www.annualcreditreport.com. Consumers can get a free report from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.
However, I have also read that only TransUnion is using FICO 08 and it is only offered to lenders, not consumers. Equifax and Experian are not currently offering FICO 08 yet. Experian has stated that they will not install FICO 08 and in February, they stopped allowing consumers to purchase their version of the FICO score.
Quote:
Little Slip-Ups Hurt Less
Debts less than $100 will not have as large a negative impact on a consumer’s score.
Looking at the Big Picture
FICO 08 will take a more comprehensive look at a consumer’s credit history. This way, one negative aspect of a person’s credit history will not necessarily destroy their credit rating.
Restrictions on Piggybacking.
Piggybacking is when a credit card holder with good credit let’s another person, perhaps with lousy or no credit, be an authorized user of the card. The good credit of the card holder would then have a positive impact on the other user’s credit. In order to reduce fraud associated with piggybacking, FICO 08 restricts piggybacking to only the card holder’s family.
Less Available Credit and Closing Accounts will Hurt More
Before FICO 08, if a consumer had a history of using most of his or her available credit, it had a negative impact on their score; now that impact will be even larger. Also, having too few open accounts, a number of inactive accounts or closing accounts will have a more significant negative impact.
Varied Lines of Credit will Help
Having varied lines of credit—such as a mortgage, a car loan, or school loans in addition to credit cards—will have a positive affect on a credit score.
www.keyetv.com/news/local/story/Your-money-is-on-the-line-with-credit-score/1dF5wuEA9E--xhlqyNGMUQ.cspx?rss=909
Credit scoring equation changing
www.sanmarcosrecord.com/local/local_story_099122937.html
Consumers should benefit as FICO creator unveils new scoring model
www.mywesttexas.com/articles/2009/03/27/news/opinion/columns/bbb_3_26.txt
FICO score changes planned to help boost credit scores
www.abc4.com/content/news/top%20stories/story/FICO-score-changes-planned-to-help-boost-credit/RI9CwFWUckGfaICjSEkI1A.cspx?rss=20
a free credit report once every 12 months, and people can do so at: www.annualcreditreport.com. Consumers can get a free report from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.