New FICO Scores Coming

January 22nd, 2008 • Related • Filed Under

New FICO Scores ComingAs issuers are stepping up their screening methods to help prevent future defaults like the ones seen over the past few years on mortgages and credit cards, banks and lending institutions are revamping their risk profiling techniques across the board. FICO, one of the biggest factors in mortgages, loans, and even merchant accounts is responding with a vengeance.

Beginning this quarter you may see some changes in your FICO score and how things are calculated. Unlike previously, where a solid payment record with a mortgage or even credit card could have a positive impact, moving forward not so much. As more credit granters are swaying away from the sub prime market and like consumers, FICO scores will adjust away from this market.

There is some bright side for some: consumers with at least a solid five year track record in their mortgage and payment history without a bump in the road will see a considerable upgrade in their credit reporting. Mind you this will come as little comfort to the rest of America as sources say fewer than 5% of consumers will see a positive uptick from this new change.

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There Are 11 Responses So Far. »

  1. Comment by Jacky on 24 January 2008:

    Why here and now with the credit crunch? Confusion is bad either way.

  2. Comment by Fliex432 on 24 January 2008:

    Today’s market = Chernobyl

  3. Comment by Cartz on 24 January 2008:

    I know fico, dun no fairissac. Sounds like some Australian company.

  4. Comment by Jenny247 on 25 January 2008:

    That’s good news for me. I have been flawless in my payments for the last 7-8 years

  5. Comment by Arthur_nyse on 25 January 2008:

    Well, that was bound to happen sooner or later. One more problem to deal with for me

  6. Comment by craig08 on 27 January 2008:

    I am glad to see something being done about it. If you have been negligent to your payments, debts, and credit in the past.. it is going to catch up with you. Get with the program already, and seek credit help. Too many of those who actively participate in keeping their credit good pay the price. Companies losing mass monies to this can’t lower rates overall.

  7. Comment by talljoe on 27 January 2008:

    I agree with arthur, this is going to just add another brick in the wall for me. There are real life issues that people incur sometimes.. FIVE years? That is just plum crazy. Nice to see all the work I have been doing to better my credit is about to go down the toilet.

  8. Comment by nygirl on 27 January 2008:

    Well I am glad that I have been able to keep all my payments up! Yet, I know this is bad news for many. Why do something that is going to be such bad news for the majority of the population?

  9. Comment by jamieb on 27 January 2008:

    5% of people will benefit from this? There has been so much talk about a recession heading our way, and what is being done about it. I am sure that preventing more and more people from buying large purchases is going to really help that. Good job - not.

  10. Comment by liz42 on 27 January 2008:

    Who is FairIsaac? Just a thought. I thought I was getting a good start on fixing my credit, now they are going to come pull the rug out from unerneath me that I have worked so hard on? This is not good news for me for sure.

  11. Comment by sarahnc on 27 January 2008:

    Well it is good to know that something is being done. It may not be the best thing, but with so many people in credit counseling and getting in over their head… They need to be doing a lot of research and tests to find some way to stop the downhill road we are on.

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