A new system created by the FICO people (”FICO 08″) will discount certain small payments lingering in collections and change the way scores are calculated. One change will allow for a stray missed payment not to destroy a credit score if it is offset with a number of good payment records. The new system will boost the credit scores of some applicants. Also address is the “Credit Repair” scam in which others (parents, for example) are piggybacked onto a credit score in order to make the FICO score higher. The new system of scoring has been in place since last month. Read the MarketWatch article for more:
MarketWatch: New FICO Model May Boost Scores
Tags: FICO 08, FICO Score