Sunday, June 27, 2010

New FICO algorithm may be more forgiving of incidental late payments

MarketWatch reports (on MSN) a change in the FICO scoring practice (“FICO 08”) used by some lenders that will reduce the impact of small lapses, such as a couple late payments of credit card bills. On the other hand, people who are closer to credit limits may find their scores lowered. The link ("The new math of FICO credit scores") is (web url) here.

People who “piggeback” onto stranger’s accounts with credit-repair companies will also see their scores lowered. The practice sounds fraudulent.

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