Tag Archives: Credit score

Credit Scoring Reform Radical Proposals

Credit Scoring Reform Wholesale Proposals Do you think that Credit Scoring is unfair from soup to nuts?  Would you like to see reforms mandated that achieve sweeping changes?  After all Sweden’s credit reporting system only keeps negative credit information for 3 years; Germany keeps it for 4 years.  Isn’t 7 years for most negative entries

Peer-to-Peer Lending Giants Lending Club and Prosper

Peer to Peer Lending Peer-to-Peer lending refers to a trending method of borrowing money that eliminates banks from the process completely.  Private Investors provide the capital to qualified borrowers at rates that are actually quite reasonable if they have good credit. Lending Club, an industry leader,  is said to reject 90 per cent of applicants.

Credit Card Limit Increase Considerations

When is a Good Time to Apply for a Credit Card Limit Increase? Getting a credit card limit increase is a much better way to gain access to new credit than applying for a new card.  With a credit card limit increase there is no penalty for a new inquiry.   The credit card company’s own

New FICO 9 Credit Scoring Model Imminent

  FICO 9 Credit Scoring Model Coming This Summer FICO plans to roll out it’s next generation FICO 9 Credit Scoring model on an as yet unspecified date this year.  It has been 6 years since FICO 8 superseded previous versions of the widely used FICO credit scoring system.  Medical debt will have less negative

Educational Credit Scores Examination

  Educational Credit Scores Confuse Many FICO rules the credit scoring world.  Despite the best efforts of competitors it is used by over 90 percent of lenders. Educational credit scores are those scores produced by credit reporting agencies and others that are little used by banks and credit card companies.  FICO still commands over 90

Debtor’s Legal Rights

Debtor’s Legal Rights Consumers are protected from abuse by credit reporting agencies, debt collectors, predatory lenders and others who prey upon the gullible and weak by a variety of laws.  Some of these laws are more well known than others.  Federal Laws usually supersede State Laws when there is a conflict. State Laws sometimes provide

Credit Scoring Measures Borrower’s Trustworthiness

What is Credit Scoring? Everyone knows there is such a thing as credit scoring.  What is credit scoring?  Who decides what it is?  How is credit scoring Measured?  How often does credit scoring change?  What information is in it?  What information is not in it?  Can I manipulate it?  Why is credit scoring important? Let’s

First Credit Card Enables Early High FICO Credit Score

 First Credit Card Big Opportunity Life has it’s benchmarks.  Turning 7 is the classical entry into the “Age of Reason” in some religions.  Now it is possible to commit a sin!  The first credit card makes it possible to commit financial sins that can lower your credit score for many years to come.  Those who

Employment Credit Checks Under Congressional Attack

Employment Credit Checks Widespread Employment credit checks are justifiable when it comes to jobs that require being trusted with large amounts of money for obvious reasons.  Jobs requiring security clearance might also be included in the category where this practice is a necessity as opposed to an annoying intrusion invading the privacy of the applicant. 

FICO Score Variations Tailored 49 Ways

FICO Score Variations Total 49 FICO Score Variations go beyond the blunt instrument many people think they are.  Many people are aware that there is a FICO Auto score available for car dealers that specifically measures things of particular importance to the Vehicle lending industry.  By this I mean that auto lenders are more concerned

e-OSCAR Automated Credit Dispute Verifications

e-OSCAR Automated Credit Dispute Verifications Wizard of Oz e-OSCAR Automated Credit Dispute Verifications (Online Solution for Complete and Accurate Reporting) is a system used by creditors and Credit Reporting Agencies as a short cut to truly fulfilling their legal responsibility to thoroughly investigate consumer’s disputes of negative credit report entries.  This system essentially makes a mockery

Credit Score Knowledge Gaps Large

  Credit Score Knowledge Needs to be Taught in Schools I’ve long been a proponent of teaching young adults how the credit scoring process works as part of their regular school curriculum.  A recent survey of adult’s credit scoring knowledge conducted jointly by the Consumer Federation of America and Vantage Credit Scoring shows just how

Credit Score Coding Explained

Negative Entries on High Credit Scorers Credit Scores of 760 and beyond frequently have notations of a negative nature.  Yes, even the well off have problems.  We have all read stories about lottery winners who have found misery with their winnings instead of the happiness they imagined such a windfall would bring.  Needy relatives, alcoholism,

Credit Reports Change Continuously

Credit Reports Change Continuously Many consumers think that a credit report is a static document that is occasionally updated and changed for better or worse.  Credit reports change continuously in reality.  As a matter of fact there is really no credit report waiting in some file cabinet at the credit reporting agency.  Nothing happens until

“Big Data” Creates “Super Credit Score” Risk Software

“Big Data” Creates “Super Credit Score” Risk Software Cutting edge money lenders around the world are interested in more than the financial data included in your traditional Credit Reporting Agency reports.  More and more they are starting to pry into your social circles, interests, hobbies, friends and associates.  Some of the new applications require access

National Credit Score Rankings Scorecard

National Credit Score Rankings:  Best and Worst TransUnion has done a statistical analysis of the Metro areas with the best and worst credit scores in the United States.  The motivation for commissioning this study was to determine the measure of risk consumers from a given area represent to a potential creditor.  How they expect this