Bad Credit? - Repair it here yourself!

There're many reasons you may want help for bad credit. We're here to help you understand what affects credit, what makes credit bad, how and what entities define your credit, guide you through the credit definitions, financial concepts, common misconceptions and provide you with information and tools that will help to solve your credit problems. Get help for bad credit now! To achieve this, we provide you with Free Access to a wealth of credit related content, forms, tools and calculators. We show you how to improve your bad credit step by step, reestablish your ability to borrow monies, how and where obtain loans, credit cards, mortgages and other financing. Repair Credit now!

FICO 08 revisited - your FICO score may increase in 2008

Tue Jan 29, 2008 02:01PM | By Tony

See more in Credit Repair | Permalink | Email | Comments (0)

Recently, an 'improved' version of FICO was introduced, the FICO 08. The new FICO 08 is already being implemented by Experian, and TransUnion expects to have the 08 scoring model available for lenders to test during the second quarter of 2008. Equifax is not implementing it yet. The Wall Street Journal has the inside - you can read the complete article here.

We'd like to outline the main changes in credit scoring ... that consumers could start seeing by the spring of 2008.

For some of us there are good news ... and it is that new FICO "aims to forgive small slips but punish repeat offenders.", and that "overall, more consumers will see their FICO scores go up slightly than will see their scores drop.", as per the maker of FICO 08 score, Fair Issac Company.

1. FICO 08 will be more forgiving of occasional slips by consumers, but the repeat offenders will be penalized more.
2. Subprime consumers with thin credit history or young people will now score better.
3. Those who are actively seeking new credit won't be penalized as much.
4. Consumers who maintain a variety of credit types (such as credit cards, a mortgage and auto loan) will now be getting higher scores.
5. But those who use a high percentage of their available credit will be now penalized to a greater degree.
6. Subprime consumers with serious delinquency (such as 90-day past payment) will get a better score if they have several other credit accounts in good standing.
7. But a person's score could drop if he or she has multiple delinquent accounts.
8. FICO 08 will no longer consider the 'authorized user' credit-card accounts which means that giving a credit card to a child or a spouse as an authorized user will not help boosting their credit score.

Based on changes outlined above, people who currently have the same FICO score could see their scores diverge under the new scoring model. Fair Isaak Company offers this fictional example on how it may look like later this year:

New score range will still be 300 to 850.

Post a comment

Name:

Email:

URL:

Remember personal info?

Comments:

Please enter the code as seen in the image above to post your comment: