This will really mix the credit pot up… Since the credit is getting tighter this new game will mess up 30% of the population’s credit,another WHAMMO for the banks lending $$$$…what a sucker punch for consumers…
Many new investors will be taking a whollop!!!
my 2 cents
Robert A. Doncaster, Jr. - “RAD”
Import/Export Entrepreneur & Investor
*** DO YOUR HOMEWORK ***
Chicago Illinois USA
& sometimes Salzburg, Austria
"A wise man makes his own decisions, an ignorant man follows public opinion”
I believe that it is better to tell the truth than a lie. I believe it is better to be free than to be a slave. And I believe it is better to know than to be ignorant.”
“Men are born ignorant, not stupid. They are made stupid by education.”
"Better to ask a question than to remain ignorant.”
This post is information challenged, but he is right. The guidelines for FICO are changing in September and we need to check with our advisors to see how we will be affected. If we have mortgage brokers ask them to look at our credit and run our credit against the new criteria and advise us. For example if the new FICO algorithm makes our number go down 10 points and because of the sub prime mess the banks tighten requirements and require a number that is higher by 10 points well that is a 20 point swing. We need to know what to expect.
How is it useless to know the FICO scoring model will significantly change soon? Unless you have an 800 score now it should make you stop and check things out. Yes as usual bizzarefun forgot to add a link to actually make a point but knowing a change is coming is meaningful to many people. Here are some links about it in case you want to read a little bit:
The new FICO08 will be hitting Experian first and will be implemented by Transunion and Equifax sometime in 2008. Experian was supposed to implement it by this month, but I’ve read that it maybe delayed a few months due to some issues they are having. For now, everything seems to be unchanged including the fact that AU’s are still being factored into the Fico score.