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MCasper
Joined: 31 Dec 2007
MCasper's page
Posts: 25
Location: Pennsylvania
1239 Magic Points
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Subject: FICO 08
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Sun Jan 06, 2008 6:08 pm
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I ran across this article outlining some of the differences in the upincoming FICO system. There seem to be many benefits to those who had a couple slip ups a while back, however it's stated the penalty for maxing out credit cards is increasing. Lots of good information and definately worth a read if you haven't read up on it yet.
http://finance.yahoo.com/banking-budgeting/article/104062/Default-Line s-The-New-Math-of-Credit-Scores
"Two people with the same FICO score currently could see their scores diverge under the new system. One possible reason: FICO 08 gives more points to consumers who maintain a variety of credit types, such as credit cards, a mortgage and auto loan, because it shows they can manage payments on different kinds of loans. On the other hand, the new scoring system penalizes to a greater degree borrowers who use a high percentage of their available credit."
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Michael Casper
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www.clearonedebt.com
P:(484)455-2677
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goodnatured
Joined: 03 Nov 2007
goodnatured's page
Posts: 3733
3 Magic Points
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Sun Jan 06, 2008 9:38 pm
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thanks for the information MCasper, you put some really good stuff on this forum, thanks for being part of it and putting all the great information out there for us to read up on, appreciate it.
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Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online |
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george
Joined: 06 Jul 2006
george's page
Posts: 75
2859 Magic Points
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Mon Jan 07, 2008 9:11 am
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The article is very helpful. I have not pulled my report as yet. I am awaiting the moment I see my report.
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George Miranda
Money does not buy happiness. Happiness is found in being content with who you are and what you have. |
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Laura
Joined: 21 Jun 2007
Laura's page
Posts: 1402
34547 Magic Points
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Tue Jan 08, 2008 11:40 am
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FICO is changing its method of calculation of credit score. Termed as FICO 08 will be more lenient towards small mistakes made by the consumers. However consumers with repeated errors will be penalized in a worse manner, harsher than before.
this will come in action by spring this year. It will take time for the lenders to monitor and check whether it is working or not. This model has been developed mainly because for the lender's request for a better risk-management tool.
According to Craig Watts the files which are "thin" or "young", or consumers who are seeking credit more recently and actively are the spheres where lenders are more interested. Thus determination of risk in this zone is essential for them.
the possibility is that two people with the same credit score when scanned under the new model might find difference in calculation. this will be due to the changes like FICO will treat consumers with a variety of credit in a better way and penalize those who uses a high percentage of the available credit.
Another information is that Fair Isaac has sued VantageScore Solutions LLC and the three bureaus for using anti competitive practices and tarnishing the FICO Brand.
I have noted the main points here.
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Regards,
Laura. |
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Guest
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Sat Feb 16, 2008 5:48 am
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| I have a $50,000 surgery that I could not afford. How does/will my credit score reflect this fact..does the fact that it is medical in nature help..ie not stand as much weight as say..a car loan..or mortgage loan would?If anyone could tell me I would greatley appreciate your help. Thank you. |
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Guest
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Subject: Fico old scoring and Fico 08?
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Sat Feb 16, 2008 5:48 am
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| I have a $50,000 surgery that I could not afford. How does/will my credit score reflect this fact..does the fact that it is medical in nature help..ie not stand as much weight as say..a car loan..or mortgage loan would?If anyone could tell me I would greatley appreciate your help. Thank you. |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 601
11 Magic Points
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Mon Feb 18, 2008 6:57 am
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Well...you could be sued for the debt, and a judgment would look really bad. Before then, it would simply reflect a generic medical collection, but FICO scores haven't yet accounted for a difference between credit and medical collections...long answer short, it hurts just the same.
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I don't dream since I quit sleeping |
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Ism
Joined: 13 Feb 2008
Ism's page
Posts: 44
2506 Magic Points
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Mon Feb 18, 2008 2:55 pm
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In the example box it said that Alicia's score would rise because she has more lines of credit open that the guy. I wonder if this change will encourage more people to leave unused cards open?
Besides fees, what are the drawbacks for open, unused lines? |
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Lunchtime
Joined: 29 Dec 2007
Lunchtime's page
Posts: 127
-23 Magic Points
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Mon Feb 18, 2008 4:08 pm
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| When can we really expect to see the change in our credit scores? |
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erb1953
Joined: 31 Dec 2007
erb1953's page
Posts: 621
-55 Magic Points
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Mon Feb 18, 2008 4:45 pm
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| Went to the link and read it, sounds like this new reporting system will really benefit some but then penalize others, I am hoping to get some benefit out of it, I have been trying to raise my score for quite some time, I am hoping that by not using a lot of credit cards or even applying for anything in years will help my score. |
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August
Joined: 09 Jan 2008
August's page
Posts: 143
25 Magic Points
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Mon Feb 18, 2008 9:00 pm
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| I read it too, looks like a lot will change. |
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diem
Joined: 20 Feb 2008
diem's page
Posts: 94
152 Magic Points
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Wed Feb 20, 2008 9:08 pm
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| I really don't like all the changes. I don't like how people refer to those who take advantage of being an authorized user as "credit fraud" as fraud is a crime punishable by law, and that simply isn't the case. That's a whole other argument. |
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