FICO Rating System To Change In September 2007
Have you heard you could “rent” your good credit rating? That’s because there was someone lined up to “pay” for your credit and a middleman ready to reap a profit in the process.
But all that is changing in a few days.
If you “rented” your credit rating, be aware of this and protect your identity from abuses now that your information is “out there somewhere”.
Protect yourself from identity theft.
Beginning in September, the newest version of the FICO formula will ignore all authorized user information when computing scores. The company that created FICO, Fair Isaac, changed the formula after learning that some credit repair companies were “buying” authorized user slots on the credit cards of people with good scores and “renting” those slots to strangers with bad credit to quickly boost their scores.
Fair Isaac said it would introduce the formula next month at one of the three credit bureaus and roll it out at the other two bureaus over the next 12 months. The three bureaus — Equifax, Experian and TransUnion — sell FICO and other credit scores to lenders.
But also because you can’t use this “quick” way to improve your credit rating, getting professional help is all the more important! Sign up to receive the free credit guide!
Read the whole article at the LA Times.
