Monday, August 18, 2014

Credit Score Changes - Good to Know!

Credit Score Changes - Good to Know!

Most are familiar with and possibly fear the letters FICO.  Your FICO credit score can make or break a deal.  Fair Isaac and Company produces the FICO scores and will soon be making some changes to how that score is calculate.

1.  They will no longer include failure to pay a bill IF the issue has been resolved.  That is a BIG IF.
2.  Unpaid medical bills will still be considered but will not weigh as heavily as in the past.

These changes are coming as a means to stimulate consumer lending came out of discussions between Fair Isaac, the Consumer Financial Protection Bureau and lenders.

Also on the financial front....

The Federal Reserve has also released a report on the Economic Well-Being of U.S. Households.
Regarding financial stability:
1. Over 60% reported doing okay or living comfortably
2. 25% said they were just getting by
3.  13% said they were struggling
Regarding renting versus buying:
1. 45% rent because they can not afford the down payment
2. 29% were unable to qualify for a mortgage
3. 10% of renters are currently in market to buy
Regarding credit availability:
1. 31% have applied for some type of credit in the past 12 months
2. 33% who applied for credit were turned down
3. 19% never applied because they thought they would be turned down

Please feel free to contact our In-house experts at Riverwood Financial to find out about lending options and expectations:

Mike Miller
Gary Wiersema

You can also go to their website HERE

#realestate #mortgage

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