Re: What you should know about the Dodd-Frank Act[ Edited ]
07-30-2010 09:38 AM - edited 07-30-2010 09:41 AM
Furthermore, I think scores should only change once per month or when information is changed/added/deleted. That way if I check my score on the 3rd day of the month and its a 703, I know that for the remainder of the month I can look into the best offers for that score. The bank cant come back and say, "when we checked your score it was only a 699...".
I have 15 active CCs and 15 times per month, my CRs update as the balance changes (though these days they are mostly at $0). If my reports can change 15x per month, then my FICO scores can change that many times, assuming nothing gets added or deleted. If I were a lender, I would want to see a real time update to someone's report and FICO scores vs. once per month so as to accurately predict risk. Conversely, if I was a borrower and I actively engaged in repair and debt paydown to get that loan, I would want the lender to know my improved scores more than just once per month if it is changing weekly to get that better rate.
I understand where you're coming from, but I still feel that scores should remain static for some period of time to allow the whole process to be transpararent. I'm thinking no more often than twice a month regardless of changes, with the only exception being something serious like a judgement having an immediate impact. We all file tax returns once per year, so having to wait two weeks between credit score updates shouldn't be that much of a detriment. My point in mentioning the tax returns is that most lenders will obtain these during the homebuying process. A lot can change from one tax return to the next.