Credit score system gets updates

The Wall Street Journal recently published an article that discussed the new FICO credit score system. Fair Issac Corp, the company behind the FICO credit score, has revamped it's system in hopes it will give a clearer picture of a person's credit risk.

I think this will be very beneficial. As first-time homeowners and mortgage payers, my husband and I were introduced to the world of credit scores. Fortunately, we have maintained excellent credit scores and have had no problem obtaining our first home mortgage and car loan with very little money upfront. We are becoming concerned however that all the people defaulting on their loans would affect us as borrowers by taking away 0% down loans and such. But, with the new credit scoring system, lenders should be better able to assess who will be a real risk and still be able to offer incentives to those of us who are not big risks.

To read the full article, visit http://www.indystar.com/apps/pbcs.dll/article?AID=2007712210347.

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