{"id":3901,"date":"2008-08-26T06:06:23","date_gmt":"2008-08-26T11:06:23","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/08\/26\/the-fico-score-gets-a-makeover\/"},"modified":"2008-08-26T06:06:23","modified_gmt":"2008-08-26T11:06:23","slug":"the-fico-score-gets-a-makeover","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=3901","title":{"rendered":"The FICO Score Gets A Makeover"},"content":{"rendered":"
by Hal James<\/div>\n

People often worry about Big Brother watching us, but don’t give a second thought to their credit<\/a> record. Well, your credit history is the foundation of many things impacting your life. In fact, your financial profile can be boiled down to a FICO score.<\/p>\n

So, just what is a FICO score? FICO is an abbreviation for Fair, Isaacs and Company, the business that came up with the calculation. Your FICO score reflects a calculation of various elements on your credit score ranking from the type of debt you have to payment histories.<\/p>\n

If you’ve every bought a car or home, you probably think you know everthing you need to about how a FICO score works. You don’t. Why? Because the recent changes to the calculation change the way the game works.<\/p>\n

FICO has always been criticized for being a bit unforgiving and structured. So, do the new modifications change this? Well, the issues being focused on are really more oriented towards the weight of certain events.<\/p>\n

The weight of transgressions in credit has always been a murky area with FICO scores. Many believed the weight given even to one late payment was far too much. After all, is one late payment really an indicator of a bad credit risk?<\/p>\n

The new FICO calculation appears designed to be more flexible. If you have one late payment, it will not kill your score. If you have multiple late payments, your score will take a bigger beating. In short, a mixed bag that is more accurate.<\/p>\n

When there is a system in place, there is always a way to trick it. The authorized user function of credit scores was one such trick. It has now been removed from all FICO calculations.<\/p>\n

The length of time you have had credit is now also given more value. This is apparently because the longer the record, the clearer the picture on what type of borrower you are. Open credit accounts early whenever possible.<\/p>\n

Whether you are just looking to get a credit card or something larger like a car loan or mortgage, your FICO score is going to play a big part in the process. Make sure you know what it is before you apply.<\/p>\n

\n
About the Author:<\/div>\n
Hal James writes<\/a> about a wide variety of mortgage issues for FSBOAmerica.org, where you can compare mortgage lenders<\/a>.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

People often worry about Big Brother watching us, but don’t give a second thought to their credit record. Well, your credit history is the foundation of many things impacting your life. In fact, your financial profile can be boiled down to a FICO score.<\/p>\n","protected":false},"author":1016,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-3901","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1016"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3901"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3901\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}