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

[MarineVietVet]

Two threads merged.

[Anonymous]

I don't personally like this unless these utility companies are going to take a real stand against billing errors and system issues they seem to have all the time.

[vanillabean]

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@Anonymous wrote:
I don't personally like this unless these utility companies are going to take a real stand against billing errors and system issues they seem to have all the time.

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You certainly have a valid point there. It's amazing how much they screw up. We moved some months ago and our names are still misspelled on various utility bills.

[FicoNoobiski]

FICO just trying to find ways to make money, by selling scores to banks who in turn will make money in fees and interest charges to the untapped potential number of citizens that do not have a credit card yet, or unable to get one.

Really, if all you need to start obtaining a credit history is to secure a secured card, then why the need to even introduce this? And if obtaining a secured card is not in their interest or inability to do so, then why would offering full blown unsecure credit a good idea to toss at them? I can only believe that is to make money, targeting especially at the untapped potential of the low income.

[Anonymous]

Finding out that WE Energies does report nearly every month is actually what impelled me to rebuild. So many people here (and me too, at one time) will forego paying the electric/gas bill during the winter because, by law, they aren't allowed to shut you off. I pay on time religiously now  lol

It's interesting that Equifax is partnering with FICO in this endeavor. TU and EX list the utility as one of my accounts, but EQ does not. 

[Anonymous]

Here is more info. The database they're building has a name. Hope it's okay to post this.

http://www.magnifymoney.com/blog/building-credit/#nctue-database-need-know152400846

[xautodetail]

this is so mess this said is help 50M people the new scores system i sink is going to hurt other 150M people utility bills report on the CR to ,is be so bad, is have to chenge the name of the CR for the LIFE PAYMENT SCORE, I don't sink is fair the utility bills is not credit or loan is a service this main if you not pay is cut-off the service so now you have 3 time hurt you scores if you not pay is report late payment, then report as cut-off after all is send to CAs we are so screw-up i sink we are so hard to fix or restartable or credit if this take effect we wested all time and lot money. is my opinion.

[Anonymous]

I think it could hurt some of us because they are utility bills.  Granted I do pay my water & elec as soon as I get them but the cable has been all over with the changes they'e making.  Just changed the due date & of course, I can forget that one.  Not willing to put those on auto pay.  Don't trust them!  I do have my cell on auto pay so it will never be late.  I'm hoping they will just use those bills for the ones who have no other credit history.   Not going anywhere anytime soon.  But this will have an impact on the younger crowd.  Nothing being reported on mine yet.

[xautodetail]

You have to sink about is not way the this new FICO is doing very very damage other the help anyone, if you are in the position the you not have score or any credit you have to doing lake all doing start building you credit, the 250M people in the usa 200M have one o two late payment on one o other utility bills. So help the economy jajajajaja i don't sink so is be very very hard for get CC, car loan , home loan, i hope this no happen by i will see here people from CS 740 down to 600 i hope not real

[Revelate]

Late reply, but reading the base WSJ article, isn't this just the mortgage world that we've had for the past few years with the use of non-traditional scores when one couldn't clear the minimum FICO UW guidelines set by Fannie / Freddie or FHA?

So FICO is creating a new score to peddle for the non-traditional bit... OK, no problem.  It suggested that this was for people who fell outside of the usual FICO scoring policy and that once a score had been generated (by all the usual means) that the traditional score would be used.  This was a bridge algorithm for the subprime market, not really anything else?  Heck one of my former employers should be all over this score in it's underwriting requirements.  Some resolution in the 18% or whatever of Americans that currently don't have a credit score, all those people that "refuse to have a credit card" this directly helps them.

Would've helped me several years ago if I hadn't had an ugly tax lien preventing me from getting a mortgage then TBH.  On the flipside probably wouldn't have found this forum unless I'd actually needed it .