Posted on: 27th Aug, 2009 02:18 am
The new version of credit scoring system, FICO 08 will help borrowers in improving their credit score. Minor delinquencies like an unpaid utility bill, unpaid library fines or parking tickets will now be ignored while calculating the creditworthiness of the borrowers.
Under FICO 08, small, missed payments which are in collections with original amount of $100 or less will no longer damage your credit score. The new system has been at Experian, TransUnion and Equifax since last month. This change has been brought in order to provide lenders with a better risk assessment of borrowers.
Under FICO 08, small, missed payments which are in collections with original amount of $100 or less will no longer damage your credit score. The new system has been at Experian, TransUnion and Equifax since last month. This change has been brought in order to provide lenders with a better risk assessment of borrowers.
Hi,
It will definitely be good for those who are struggling with their low credit scores. It may not improve everyone's credit scores, but it can surely improve the scores of those who have small delinquencies showing up on their credit reports.
There are many borrowers who might have missed a single payment in the past or have not been able to pay a utility bill or library fines, but have a good payment history otherwise. The good thing about this new credit-scoring system, known as FICO 08, is that these small missed payments will no longer haunt the borrowers when they apply for a new credit. However, those who have grown a habit of paying accounts late are likely to get adequately penalized through this new scoring system.
It will definitely be good for those who are struggling with their low credit scores. It may not improve everyone's credit scores, but it can surely improve the scores of those who have small delinquencies showing up on their credit reports.
There are many borrowers who might have missed a single payment in the past or have not been able to pay a utility bill or library fines, but have a good payment history otherwise. The good thing about this new credit-scoring system, known as FICO 08, is that these small missed payments will no longer haunt the borrowers when they apply for a new credit. However, those who have grown a habit of paying accounts late are likely to get adequately penalized through this new scoring system.