The new FICO 08 coming - I think this is the basis of current conditions, increase is not a country, but the values and interest rates.
Years, in May this year, Fair Isaac, the FICO score provided by the company 90% of the 100 largest banks (them) a new, because they say "improved" model agency. This model to predict that they will help to reduce the lender's consumer credit files, 5 to 15% of the default rates.
Notes are still"Distance 300-850 points. A higher score consumers will get lower interest rates and lower rates of loans to consumers a better chance would be difficult to get loans, who wish to obtain the loan interest payments or a series of a higher rate of credit.
These values will be included in the calculation factors remain the same: the history of debt and payment of the amount to be taken (this is the people watching, I wouldDescribed below), length of credit history, the number of requests and the recent establishment of credit, as well as "natural" is used to credit (department store cards, gas cards, authorized users (this will change), mortgage loans or car loans, etc.)
Where two people have had the same description will now fall in the increase in guests and other guests. FICO's in 2008, is expected to have more points, many types of consumer loans in order to maintain the portfolio theory Auto loans, mortgages and credit card debt. It is not unusual, because it has been regarded as observed and evaluated the different types of lenders. Of a department store credit card, always payments, or even a month is not usually score cards of people who have a high mortgage payment, which in the timely payment of monthly people. This would be expected. However, with the "new and improved" model --Punishment "is a person's FICO is to provide a high proportion of credit. This means that if you have a good combination of loans, all decisions are reached on time payments, but also carried out some of your high credit card balances -- your guest down. these or lower credit and a good payment record to see the management, their achievements had.
You who also added that: "authorized users" to help people build credit situation (she had aSpouse or your son / daughter to help them credit) the change is obvious to all. This practice is called "piggyback" without that person's credit score effects you want to help more. It seems that in the past, some people think that this is "service less than ideal" credit scores have been improving customer companies. They will be used with good grades and credit limits, and to authorize the adding of credit poor person whoUsers to improve their performance.
I read the Fair Isaac claims that the new evaluation system, overall, more consumers will see who is for these people to see their performance decline in the FICO score down slightly. Remember, your score down, not only means that each new loan, you are looking for, you can use a higher interest rate, or even be deprived of, but it can pay your creditors immediately to reduce the available credit line (Trip 1 exhaustionLine of credit may also hurt your score later), and removal of the new "risk" factors of "universal default policy is called the current interest rate basis.
Now let us look at some recent trends in credit cards and see what happens what you think. What do you think most consumers will be financially or from the bank loan is more conducive to economic interests? After all, if more people see their FICO score positive charge, they should also beLowering interest rates to pay their sub-prime mortgage loans and take advantage of these 0% balance transfer credit cards provided by the influx is currently market position.
1. Americans are nearly 1 trillion of credit card debt.
2. Consumers to pay 68 yuan 100 million U.S. dollars worth of purchases last year alone. 7.8% growth, the biggest increase in seven years.
3. 60% of consumers conduct their credit card balances.
4. According to Department of Labor - for theFor every $ 1000 of disposable income Americans spend an average of $ 1005
5. In 2007, credit card debt, a record time high 943.5 billion U.S. dollars, the U.S. Federal Reserve Board euros, an increase over the past five years, more than 22 percent since 1996, more than doubled -.
6. Stored in the 20th century, 80 years, U.S. consumers 10-11% of disposable income. Since 2005, according to the U.S. Department of Commerce figures, that Americans save less than 1%.
7. In 2006, the credit card company17 billion U.S. dollars, straight fines, according to U.S. PIRG leaders (in the public interest groups FIGO).
8. In 2006, consumers received nearly 8.0 billion direct mail credit card response.
9. Some credit card agreement says, the font changes in the company, including interest, "for any reason at any time for any reason." This is one for the "general terms of the practice of non-compliance." This means that if you apply when the final payment,Refused credit, even if you made all your payments on time, but a lower compensation for a high FICO score indicates that you are more likely to trigger the credit ... you can see your credit card maximum interest rate increase. An example: If you have five credit cards. You have the time for payment, of which four were late, but in the fifth card, all five people can claim the credit card company (if they have such a provision, most of them) in the general default provisions.
10. TheThe average card in this "general implementation of the provisions of non-compliance rate," up to 36%.
11. After CardTrack.com - credit card payment in their proportion of people who are criminals, is 3 years, the highest value.
With the new FICO 08 types - any person who is over 50% of the available credit balance (that is, if you are a 5,000-dollar credit limit credit card, you owe 2501 U.S. dollars or above), you will not be punished.
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