Americans who fall behind on loan payments, rack up rising debt or take out personal loans to consolidate debt will likely see their credit scores fall under updates planned for the FICO scores.
Americans who fall behind on loan payments, rack up rising debt or take out personal loans to consolidate debt will likely see their credit scores fall under updates planned for the popular FICO scores, according to Fair Isaac Corp., the creator FICO scores.“Most consumers will see less than a 20-point swing in either direction,” David Shellenberger, FICO’s vice president, product management, scores, said in a statement on Thursday.
For example, FICO’s last update in 2014 was seen as bolstering credit scores. But the most-used FICO model is still the one released 2009, says Ted Rossman, industry analyst for CreditCard.com.Tips for better FICOs: “Credit scores are extremely important because they help determine whether or not you get approved for a loan or line of credit, and if you do, what interest rate you will be charged,” Rossman says. “They are among the most important numbers in your financial life.”
The changes come as standards tighten for some loans and lender confidence in the record 10½-year-old economic expansion slips. The economy remains on solid footing but has slowed and is expected to pull back further over the next year. Household debt is at record highs but is historically low as a share of total income.That letter from the IRS could be a fake.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Report: FICO Credit Score Adjustments Could Hurt Consumers With Growing DebtFair Isaac, the company behind FICO credit scores, is updating the way it calculates consumers’ creditworthiness—which could result in lower scores by lisettevoytko
Read more »
Average FICO score hits record high—here's the average credit score in every stateThe average FICO score hit a record high of 703 in 2019. CNBC Select breaks down the average credit score in every state according to the 2019 Experian Consumer Credit Review.
Read more »
WSJ News Exclusive | FICO Changes Could Lower Your Credit ScoreChanges in how the most widely used credit score in the U.S. is tallied will likely make it harder for many Americans to get loans.
Read more »
WSJ News Exclusive | FICO Changes Could Lower Your Credit ScoreChanges in how the most widely used credit score in the U.S. is tallied will likely make it harder for many Americans to get loans.
Read more »
Average FICO score hits record high—here's the average credit score in every stateThe average FICO score hit a record high of 703 in 2019. CNBC Select breaks down the average credit score in every state according to the 2019 Experian Consumer Credit Review.
Read more »
Report: FICO Credit Score Adjustments Could Hurt Consumers With Growing DebtFair Isaac, the company behind FICO credit scores, is updating the way it calculates consumers’ creditworthiness—which could result in lower scores by lisettevoytko
Read more »