Credit Scores To Get Boost With New Formula
Friday, August 08, 2014
FICO, the company that creates an important formula for consumer credit reports, says it will stop penalizing people who’ve missed some payments if that debt has been paid off or settled with a collections agency.
FICO, which was formerly called Fair Isaac Corporation, will also devote less importance to missed payments on medical debt in its formula.
Bloomberg Radio’s David Wilson joins Here & Now’s Jeremy Hobson to discuss the changes, which could mean higher scores for everyday consumers and lower interest rates for home mortgages or car loans.