Credit scoring company FICO just announced that they will change the way scores are calculated. FICO is used by more lenders than any other credit score calculating company. The changes include no longer factoring an account or debt that is with a collection agency but has been paid off or settled, and also will give unpaid medical medical debt less weight.
The major changes to the way they calculate credit scores will make it easier for consumers to borrow money and for banks to lend money. The changes should be most beneficial to people applying for mortgage loans. Lenders will also benefit from the changes as they should make it easier for banks to lender money.
By Amy Gilmore
The Wall Street Journal