How are you affected by your FICO score!!!!

Fair Isaac Corporation, maker of 

the FICO credit score used by 90 

percent of banks, says its new 

scores will do a better job at 

predicting which borrowers will 

default on a loan.  Called the 

FICO 08, it will be more forgiving 

of the occasional late payment but 

will take a harder line on repeat 

offenders. They predict that the 

new system will reduce default rates 

by 5 percent to 15 percent.  Banks 

and other institutions use the scores 

to make decisions on loans, interest, 

insurance, cellphones and in some 

cases, employment.  One other big 

change in FICO scoring is the way 

‘authorized users’ of credit cards are 

evaluated. It used to be that children 

could be listed as an authorized user 

on their parents’ cards.  They would 

then acquire the credit history for the 

card, even though they were never actually 

financially responsible for the card.  

FICO 08 will eliminate any advantage to 

being an authorized user. 

Lenders hope this change will eliminate 

a legal, but questionable practice of brokering

credit improvement by selling authorized user 

status on credit cards.



Blessings to your Real Estate Investing Business,


Milton B. Yates
www.miltonyates.com


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