FICO’s New Credit Score takes Banking Activity into Account Boosting Consumers’ Scores

Fair Isaac Corp. the company that invented credit scores, announced a new credit scoring system based partly on consumers' bank account activity. Heretofore, credit scores ignored consumers' bank activity. The new score called UltraFICO Score is not meant to weed out persons applying for credit. Rather, it is meant to improve credit scores for those who maintain a bank balance and who avoid overdrafts.  FICO is doing so on the theory that such persons are more likely to repay their loans. According to a WSJ article, the UltraFICO score will function as an appeal of sorts, boosting many applicants with less-than-ideal...

CONTINUE

A Truly Terrible Idea–Homeland Security Proposes to Check Credit Reports of Immigrants

The Department of Homeland Security today announced a proposed rule that would make it harder for immigrants to get visas to study or work in the U.S., to extend their visas, or to become lawful permanent residents (green cards). DHS proposes to use the immigrant's credit report and credit score in a factor in ruling on applications. This is a truly horrible idea. The reports and scores are not designed for immigration purposes. Credit scores are only designed to predict if a consumer pays his or her bills on time. Credit scores are based on credit history and what balances...

CONTINUE

Employers Must Provide Negative Background Reports to Job Applicants Before Deciding not to Hire Them

The Fair Credit Reporting Act regulates employers who use background reports in the hiring process. Whenever a background report has negative information, the employer is required to send a copy to the applicant and given him or her a reasonable opportunity to comment or explain the contents of the report. For example, a background report may state the applicant was convicted of a felony when in fact the conviction was a misdemeanor. Or the report may have mixed the criminal history of a another person other than the applicant. In such cases, the applicant should be given the opportunity point...

CONTINUE

What Families in Financial Difficulty Should Know about Credit Reports and Credit Scores

This is an excellent article by the National Consumer Law Center that explains essential information about credit reports and credit scores. What Is a Credit Report? Your credit report is a record of how you have borrowed and repaid debts. Almost every adult  American has a credit file with each of the three major national credit bureaus: Experian, Equifax, and TransUnion. Many but not all creditors report each month electronically to one or more of the credit bureaus the status of each of their accounts. Your credit report is a record of the history and description of the status of...

CONTINUE

Credit Reporting Firms’ Changes are Boosting Credit Scores

  Attorneys general in various states sued the Big 3 credit reporting agencies beginning in 2015 alleging their reports included misleading information. The lawsuits were settled and the agencies agreed that they would not report a collection account when it was the only one on a person's report. They also agreed to remove non-loan items that had been sent to collection firms such as gym memberships, library fines, and traffic tickets. They also agreed they would not report medical debt that had been paid by insurance. Beginning in 2017, the Big 3 began removing tax-lien and civil-judgment data. Earlier this...

CONTINUE
1 2 3 53

REQUEST A FREE CONSULTATION


  • 1736 Stockton Street
    Ground Floor
    San Fransisco, CA 94133
  • (415) 651-1951