American Debt Enders Says New Credit Score To Track You More Closely

In just a few months, your banker will know more about you than your wife! This is not speculation, or wild imaginings, just a simple fact. According to a NY Times article from 12/06/11, entitled, "A Credit Score That Tracks You More Closely", A company called CorLogic has teamed with FICO company, the originators of the FICO credit score now in such wide use to provide much more information on a credit report than is currently available.

What Information? How about things like Payday loans, furniture rental records, utility bill payment history, any and all types of bills that have not been paid in a timely fashion, like a Hotel Bill, etc. CoreLogic has long been in the information business. This is just an expansion of their business, since they are already supplying information on about 100 million consumers. The difference is that this will now be routinely expanded to be a part of your routine credit scoring model, used by all types of lending institutions, not to mention employers.

Fico company is tweaking their proprietary credit scoring formula to accommodate the new data on a routine basis. The present scoring formula will no longer be used.

Should you be concerned? I would say definitely. Are some of these matters really anyone's business? Think about this. It's a cold winter, and ordinarily you pay your utility bill right on time, however, because it has been so cold, this winter you had a few late payments because the price of energy was higher. How is this going to effect your ability to borrow money now? It is going to be one more thing that you have to explain to a lending institution.

Are you seeing what is happening here? Imagine what will be involved in now trying to correct errors on your credit report. This new report will be scouring records of all kinds, to include on your credit report.

I would recommend making sure that your current credit report is free of any errors now, because things are about to get more tightly controlled. That being said, if you have items which need correction, and Credit Restoration, you will want to correct them now.

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Written By
Steven Ciantro
Certified Credit Counselor
American Debt Enders
877-766-2465
Help@americandebtenders.com

Comments

[prepaid card]

I am pretty much pleased with your good work. You put really very helpful information

[Steven Ciantro]

Thank you for the kind words, they are very much appreciated.