Are FICO Application Scores Changing?

FICO Scores Application to be Revised? 

Recent news indicates that FICO (Fair Isaac Corporation) is to be revised. FICO is used by bankers and lenders to evaluate the credit wordiness of an applicant applying for a loan. The most common is home loans. FICO scores usually run from 300 to 850. Currently, there are three organizations that collect data. They are Equifax, Experian and TransUnion. Traditionally, a person applies for and starts using a credit card to gain a score. When you make your minimum payments on time, your score elevates.

The problem that has arisen is credit cards are a temptation to overextend oneself. Thus, your score goes down when your payments aren’t made on time and so does the likelihood that investors want to take a risk that you won’t default on a loan.

There are approximately 200 million persons that do have a FICO credit scores. Approximately 53 million persons do not have FICO credit scores for one reason or another.

The new guidelines are to be driven by Equifax and Lexis Nexis. Equifax is going to evaluate the scores based on new data from the National Utility Database and the National Consumer Telecom and Utilities Exchange (NCTUE). Basically, if you pay your utility and phone bills on time. Lexis Nexis collects their data on public records. This means where you live and when you move. If you move around a lot, it may be detrimental to your FICO scores.

Richard and DelAnn Lozzi will be happy to help you find the home or property of your desire. Please contact them at: 949 525 3766, [email protected], https://richanddelann.com/ (Ocean and Land Realty) BRE # 01961327.

In the meantime watch this video for great advice: