No credit? New credit score for people with no credit history
Note: This is kind of old news now, but I don't think I've posted anything about it before and it's kind of interesting.
"Consumers who have been turned down for credit or who've paid a higher interest rate because a scant credit history gave them a low credit score have another shot now at more favorable terms.
Fair Isaac Co., creator and owner of the FICO score that is widely used in the mortgage, auto loan and credit card industry, has created a new score designed to predict credit risk for individuals with little or no credit history. The new FICO expansion score draws on information in an array of small credit reporting agencies outside the realm of the three major credit bureaus, says Craig Dillon, vice president of scoring solutions at Fair Isaac. The new score draws on data from industries such as pay day loan companies, rent-to-own stores and banking organizations that share information about people who abuse overdraft protection on checking accounts.
The company's market research, which is confirmed by others in the credit industry, indicates that while about 160 million consumers have enough information on file to generate a valid FICO score, as many as another 50 million do not. The consumers who might get a break with the new score include recent immigrants to the United States (whose good payment histories from their home countries don't transfer to the U.S. credit reporting system), college students, new divorcees and widows, those with low incomes, and people whose cultures don't trust financial institutions or large national organizations, Dillon says."
Full Article From BankRate.com
"Consumers who have been turned down for credit or who've paid a higher interest rate because a scant credit history gave them a low credit score have another shot now at more favorable terms.
Fair Isaac Co., creator and owner of the FICO score that is widely used in the mortgage, auto loan and credit card industry, has created a new score designed to predict credit risk for individuals with little or no credit history. The new FICO expansion score draws on information in an array of small credit reporting agencies outside the realm of the three major credit bureaus, says Craig Dillon, vice president of scoring solutions at Fair Isaac. The new score draws on data from industries such as pay day loan companies, rent-to-own stores and banking organizations that share information about people who abuse overdraft protection on checking accounts.
The company's market research, which is confirmed by others in the credit industry, indicates that while about 160 million consumers have enough information on file to generate a valid FICO score, as many as another 50 million do not. The consumers who might get a break with the new score include recent immigrants to the United States (whose good payment histories from their home countries don't transfer to the U.S. credit reporting system), college students, new divorcees and widows, those with low incomes, and people whose cultures don't trust financial institutions or large national organizations, Dillon says."
Full Article From BankRate.com
posted by Dave at 8:05 PM
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