@creditstalker wrote:What does this mean?
There is already evidence that a new credit-scoring approach by Fair Isaac Corp. will provide a pathway to decent FICO scores for some consumers who currently don’t have traditional scores.
Fair Isaac, also known as FICO for its trademark credit scores, is expected to announce a new approach as soon as this week that uses alternative data, including payment history with cable bills, cellphone bills, utility payments and other factors.
Of the 53 million Americans who don’t have traditional FICO scores, 15 million already can be scored with the new approach, which isn’t yet named, FICO says. And some one-third of those individuals have a score under the new system that is above 620, the company says.
The new FICO score, like the traditional ones, ranges from 300 to 850. Lenders, including credit-card issuers, car-loan lenders and a growing number of mortgage lenders, often approve applicants with traditional FICO scores above 620. That suggests that the new score could help identify people who can handle debt responsibly but have previously been shut out of getting financing.
The percentage of individuals getting scores above 620 on the new gauge “is a good indication that this is a process to onboard more consumers and allow them to maintain more creditworthiness,” says Jim Wehmann, executive vice president of scores at FICO.
Among the potential new crop of borrowers created by the new credit score, those who successfully apply for a credit card and handle their payments well—avoiding falling behind on payments and maintaining low balances—for at least six months will then receive regular FICO scores, the company says. That will make it easier for them to get approved by other lenders, including car-loan and mortgage lenders
I have no idea, the news article is on WSJ and im not going to subscribe to read it. Looks from what you have posted alternate methods of obtaining a Fico are going to be allowed in a new release.
Still waiting for FICO 9 or whatever its called to become mainstream(the model where paid medical debt gets deleted).
People such as myself who try & do the right thing by paying their debt completely(in my case it's all medical) after a life-changing event screws their credit up,need to be thrown a bone. I've never missed a payment on a CC or anything else, yet because I couldn't afford the astronomical fees associated with multiple surgeries, my credit is now FUBAR for many years.
Anyways, the article would be a nice addition for many people as long as they don't also raise the score range so that people are still in the same place as before the model changes to whatever.
Does anyone know how far they go back on utilities...if someone was late in the past is that going to show?
Starting Score: 3/2014 - TU FICO 566, EQ FICO 569, EX FICO 563