The new FICO credit scores labeled as FICO 08 should help those with small bumps fico 08 credit scoringon their credit record. Perhaps you have a late car payment or those unpaid parking tickets that are hiding in your glove box are giving you a problem and effecting your FICO credit score.
Help is is here with the newest version of the credit scoring system where minor bumps are now overlooked. Under the new FICO model called FICO 08 smaller missed payments under $100 will no longer damage your credit score.
Another benefit is consumers are less likely to be effected by single late payments if it occurred 2 or more years ago. This system has been in effect since last month at Experian, TransUnion & Equifax.
The idea is to provide lenders with a better way to assess risk of borrowers. With these changes consumers with bad credit scores may see their scores rise while those who are high risk may see them drop.
Not all lenders are using this model although currently over 400 are using it or testing the new FICO model. Many lenders are waiting for Freddie Mac and Fannie Mae to adopt the FICO 08 before jumping on board.
If you have any questions about your credit score, want to run a credit check or talk about qualifying for a home feel free to contact us or call 612-282-7653.
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