3 Things You Need to Know About the Upcoming Credit Score Changes
Have you heard the news? Your credit score might soon be changing. That's because credit scoring companies like the Fair Isaac Corporation (FICO) are planning to make significant changes to how their scores are calculated to ensure that it more accurately interprets all available market data. These changes have the potential to affect millions of consumers looking to do everything from qualifying to buying a car to purchasing a home to renting a Tucson property management home. Here are 3 things you need to know about the upcoming credit score changes.
1.) Medical Debt: Medical care debts are deemed to unfairly affect credit scores and will receive significantly less weight in the updated rankings. Medical bills can be expensive and can often reflect a dispute between an insurance company and a health care provider, and has little to do with the consumer's creditworthiness.
2.) Unpaid Bills: Have unpaid bills or debts that went into collection that have since been resolved or paid off? The new credit score calculation update will address these debts and no longer allow them to have a negative impact on an individual's credit score.
3.) Lack of Credit History: If you or someone you know has had trouble qualifying for financing due to lack of established credit history, these credit score changes could help. The new credit scoring system could help those with little established credit to obtain a creditworthy score by providing them with a score. In the past those with lack of credit had a difficult time acquiring a credit rating and this change encourages this process.
The supposed credit score changes are set to take affect this fall, and Tucson property managers recommend you keep a close eye on your credit report. Consumers can receive up to one free credit report a year and should examine their reports closely for any changes, discrepancies, suspicious activity, or debts you are unaware of to better protect yourself and your opportunities for obtaining financial loans.
Though many consumers support the change designed to stimulate the economy, not everyone is on board with a system they believe may allow people to acquire more debt. Where do you fall on this issue? Do you believe a change to the credit scoring process would help or hinder you? Share your thoughts on our Simply Property Management – Paielli Realty, Inc. Facebook or Twitter page. – Greg
Simply Property Management – Paielli Realty, Inc.
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