FICO Changes Credit Scoring Model

FICO credit score uses a new scoring model

A recent article detailed changes that Fair Isaac Corporation, the creator of the well-known FICO credit score, made to it’s credit scoring model. The article talks about how the new scoring model for the FICO credit score, which is used by many lenders to judge applicant quality, will attempt to better predict those who are more likely to default on a loan.

Full article: FICO Credit Score Gets Makeover

The new scoring model should be in use by Spring of 2008, and, once the new model is in place, some consumers could feel the changes when applying for a credit card or a new loan.

It’s always wise to stay on top of your finances and be fully aware what is and is not listed on your credit report. Keeping tabs on the overall state of your credit as well as your current credit score can greatly benefit you when the time comes to apply for a new loan. If there is an error or mistake you can correct it before it has a chance to affect your next loan terms.

Did you know that once per year, consumers can request a free copy of their credit report? Read this for more information about this guaranteed right.

Posted in Banking, Credit Cards, Insurance, Loans, Miscellaneous, News, Personal Finance

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