“With the changes, individuals who pose a low credit risk will probably see their scores rise a bit, and those who are high risk could see their scores drop,” says John Ulzheimer, president of consumer education for Credit.com . So, what changed in the new credit score system?
- Missed payments lingering in collections with original amounts of $100 or less will no longer do damage to credit scores
- Consumers are less likely to be penalized for a single delinquency if it occurred two or more years ago
- If a consumer’s credit usage is high, that will be more likely to hurt his or her score
- The effectiveness of “Piggybacking” will be reduced, eliminating the tactic of improving low credit scores
Not all banks are adopting it immediately, but more than 400 lenders are using or testing FICO 08. The best ways to assure your credit score remains high haven’t changed. Pay bills on time and keep card balances low. Your payment history, and the amount you owe on your accounts as a ratio of the amount of credit you have access to, are important components of your credit score.
Now more than ever, your Credit score will come into play when you applyto finance or refinance a mobile home loan. Your credit score is the best way for a lender to assess the risk of lending to an individual. Nowadays, if your FICO is below 700 then you will have a difficult time getting approved. However, we still have some options for you if you rscore is above 640.
