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
Sources:
The Wall Street Journal
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One Response
Proof reading is our friend, last line of the article “make it easier for banks to lender money.” Since when is “lender” a verb?
Other than that, I think this move by FICO will do a great deal towards dragging even more people into debt, setting us up for yet another eco-bubble, ready to burst with disastrous effect just as the economy starts to look better.