FICO scoring model change to include utility payment history, a help or hurt?

[cem13]

Detroit Edison (DTE) reports to EX and EQ every other monthy.  They have been included in my FICO score for 20 years.

They are my oldest credit limit at 25 years.  It sucks because they do NOT report to TU and my TU score is 10~15 points lower because my next oldest account is 15 years and my AAoA drops by a few years.  

I wish they reported to TU and do it monthly.

[Anonymous]

Well you may get your wish!

I wonder when they roll out the demo and to whom. I'd be curious how it affects the current scoring and if it trickles into the other FICO models.

[Anonymous]

From what I understand this is not going to apply to anyone that has a FICO score. This will just be used for people that have no FICO score. So for those affected by it, it should help them as they can show on time utility payments as proof they are trustworthy enough to lend to, unless of course they don't pay their utility bills on time.

[Anonymous]

That seems odd to have two separate models. I would be very surprised not to see it applied across the board but more heavily towards those with no credit card history.

And how would it not tank those new scores when they phase out into the regular scores? You AAoA would bottom out. Which penalizes the new to credit again.

[1_2]

I caught something on a local news/talk channel today that FICO may start using utility bills in calculating scores. Supposedly it will give some 55 million Americans (mostly lower income according to the news station) FICO scores who currently dont have one. In theory according the man who was discussing this on the television this will help people and the economy.

I'm not sure how accurate this informaiton is. If its a fact that FICO is actually going to start doing this or just something thats being considered or debated. Its a concern for me. I have a natural gas bill that I cant pay online. The closest office I can pay it at is over 50 miles away. They close at 4pm and I dont normally get off work until 5 pm. I suck at mailing things so I have been late on this particular bill several times. If this is something that is actually going to happen will it be retroactive? If so then my excellent credit score is going to take a beating due to that hick gas company and my inability to mail on time. UGH.

[Tonya-E]

Eek...I understand that they think this will help the economy but I actually think it will put many at a much higher disadvantage.  I hope this doesn't go through!

[1_2]

Me too. I have worked so hard to get my credit back up to excellent and now if this happens it wont be. I will do my level best to get that bill mailed off in time from now on but I admit I havent been good about it since it didnt hurt my score. The only thing gas I have is gas logs and stove so I dont use much. I rarely ever cook. I do use the logs some but more for looks than heat.  The backwoods company I deal with doesnt accept plastic or direct pay from your bank. Its cash or check only so I cant even call and pay the bill. I just suck at mailing things on time.  I just hope its not true but if it is, I really hope its not retroactive. If it is, I will be screwed.

[Tonya-E]

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@1_2 wrote:

Me too. I have worked so hard to get my credit back up to excellent and now if this happens it wont be. I will do my level best to get that bill mailed off in time from now on but I admit I havent been good about it since it didnt hurt my score. The only thing gas I have is gas logs and stove so I dont use much. I rarely ever cook. I do use the logs some but more for looks than heat.  The backwoods company I deal with doesnt accept plastic or direct pay from your bank. Its cash or check only so I cant even call and pay the bill. I just suck at mailing things on time.  I just hope its not true but if it is, I really hope its not retroactive. If it is, I will be screwed.

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Here's an article on it....I don't think it will be retro. But it will make it imperative to pay on time from the looks of it. Like even a day late could hurt:

http://www.pressherald.com/2015/04/03/new-type-of-credit-score-based-on-whether-utility-bills-paid/

http://consumerist.com/2015/04/02/potential-fico-credit-score-changes-could-hurt-rather-than-help-so...

[MidnightVoice]

See "Credit in the news"

http://ficoforums.myfico.com/t5/Credit-in-the-News/FICO-scoring-model-change-to-include-utility-paym...

[Anonymous]

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@1_2 wrote:

I caught something on a local news/talk channel today that FICO may start using utility bills in calculating scores. Supposedly it will give some 55 million Americans (mostly lower income according to the news station) FICO scores who currently dont have one. In theory according the man who was discussing this on the television this will help people and the economy.

I'm not sure how accurate this informaiton is. If its a fact that FICO is actually going to start doing this or just something thats being considered or debated. Its a concern for me. I have a natural gas bill that I cant pay online. The closest office I can pay it at is over 50 miles away. They close at 4pm and I dont normally get off work until 5 pm. I suck at mailing things so I have been late on this particular bill several times. If this is something that is actually going to happen will it be retroactive? If so then my excellent credit score is going to take a beating due to that hick gas company and my inability to mail on time. UGH.

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Personally, this would be a huge boon to my scores. On the other hand, I've been in the spot where you have to debate who to pay by who's going to turn off a required service... and that could potentially hurt a lot more people than it would help.

For your gas bill, can you set up an auto-pay through your bank/CU?  My city doesn't accept online payments for water/sewer and I have the same problem with mailing. I just have my CU send them a check, well in advance, for $90 (average bill is between $85 - $90). Once a year (when my power bill resets for their Level Pay Plan, though you can pick any random date... say a birthday), I pause the auto-pay and request a check sent for the actual amount due; which is, of course, a smaller number than usual because I've built up a credit along the way..