When you go to buy a home (or get any other loan) your credit score is pulled. Often, this is a FICO score, based on a system created by the Fair Isaac company. Now, though, everything is about to change. Fair Isaac plans to get rid of the ability to "piggyback" better credit, and it plans to ding consumers harder for debt. The Panelist reports on the latest update to the FICO score:
Technorati Tags: buy a home, Credit score, Fair Isaac Company, FICO score, mortgage blog, Personal finance, update FICO scoreNo longer will consumers (like college students) be able to piggy-back
their way to better credit as authorized users on parental credit
cards. The update, dubbed FICO 08 – and touted as a suite of tools
designed to predict future default risk – is alleged to increase
predictive strength by 5 to 15 percent, according to Fair Isaac’s vice
president of scoring, Tom Quinn. These tools will penalize consumers with a high debt load more than the earlier version.
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