Credit Scores Perpetuate Past Discrimination

Credit Scores Perpetuate Past Discrimination A report by the National Consumer Law Center entitled Past Imperfect: How Credit Scores and Other Analytics “Bake In” and Perpetuate Past Discrimination shows how past discrimination perpetuates low credit scores. Credit reporting and credit scoring are supposed to be objective, with no room for flawed tools such as human judgment and biases. Yet for years, study after study has found that African-American and Latino communities have lower credit scores as a group than whites and Asians. The report discusses how credit scores perpetuate racial and economic inequality. Eliminating the impacts of past discrimination may...

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FICO on Understanding Credit Scores

FICO on Understanding Credit Scores FICO credit scores are used by 90% of lenders. For a thorough explanation of how FICO scores are computed, go to FICO’s website, myfico.com. FICO’s booklet on the subject covers the subject, which you may download here.

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How Hard and Soft Inquiries Affect Credit Scores

How Hard and Soft Inquiries Affect Credit Scores Consumers are often confused about the effect of inquiries on their credit scores. CreditCards.com consulted experts about the differences between hard and soft inquiries, how the big three credit bureaus’ report on inquiries, and inquiries’ effects on credit scores. Their experts explained that a hard inquiry means the consumer actively applied. for credit. Soft inquiries are reported anytime you review your own personal credit report, your credit is evaluated by existing creditors, or you receive a promotional credit card offer in the mail. Soft inquiries have no impact on your credit report...

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Getting and Keeping a Good Credit Score Depends on Your Credit Reports

Getting and Keeping a Good Credit Score Depends on Your Credit Reports Your credit scores depend on what is in your credit reports. Your credit reports have information on how you have used credit, how much credit you have available, how much credit you are using, whether you made payments when due, and whether any creditor has sent an account to a debt collector. Credit scores are numbers that designed to predict how likely you are to pay back a loan. The most basic and important actions you can take to get and keep a good credit score are as...

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Consumers mistakenly believe non-FICO credit scores are actually FICO Scores

Consumers mistakenly believe non-FICO credit scores are actually FICO Scores According to a survey commissioned by FICO, 62 % of consumers who received non-FICO credit scores online believe they had received actual FICO® Scores. More than 8 in 10 consumers believe the scores they obtained from the non-FICO sources are scores widely used by lenders to make credit decisions, which is not the case. The survey found that 71% of consumers agree it is important that the credit scores they obtain are scores widely used by lenders to make credit decisions. But the only scores used in 90% of credit...

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