Fair Isaac Corporation, the creator of one of the most widely used and influential credit scores, FICO, recently announced that it will be making some changes to its widely used credit calculations. The FICO credit scores are used by banks, auto lenders, insurance companies, and other institutions to predict whether you will pay your bills on time. Consumers with the higher credit scores (above 760) generally receive lower interest rates. FICO will stop including information about bills that have been paid or settled with a collection company and the new system will give less weight to medical collections. The changes are designed to have a positive effect on credit scores and help consumers be able to access credit and get lower mortgage and insurance rates. The positive lift in credit scores is also expected to give a lift to the economy.
Posted on: Mon, 18 Aug 2014 02:35:07 +0000
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