Credit changes.

[txferrari]

I figured I'd post this since a thread was made on credit.

The reason why I'm trying hard NOW to get my credit straight is because credit decisions are about to change.

There will be NO MORE credit score. They are eliminating it, which is going to hurt the folks with bad credit. 75% of credit decisions are based on the score alone.

I'm telling you now, fix fix fix what you can now or its only going to get worse later on.

[Moody]

I figured I'd post this since a thread was made on credit.

The reason why I'm trying hard NOW to get my credit straight is because credit decisions are about to change.

There will be NO MORE credit score. They are eliminating it, which is going to hurt the folks with bad credit. 75% of credit decisions are based on the score alone.

I'm telling you now, fix fix fix what you can now or its only going to get worse later on.

Can you elaborate a little more? Where did you source this information?

[txferrari]

From my lenders.

[Moody]

From my lenders.

How will they rate your credit with out the scoring system?

[txferrari]

You won't be rated by a score. What they are going to do is actually look at everything and base your future spending on your past.

If you have anything negative that is recently posted, its going to hurt even worse than it does now. If you have negative that is from years ago, but your score isn't all that great yet, you most likely will slide on a few things.

[sbfuller]

You won't be rated by a score. What they are going to do is actually look at everything and base your future spending on your past.

If you have anything negative that is recently posted, its going to hurt even worse than it does now. If you have negative that is from years ago, but your score isn't all that great yet, you most likely will slide on a few things.

and maybe consinder more of the DTI ratio

[Swift E]

When will this take place?

[Mr. Unassailable]

I would think that would help people with bad credit. because all u have to do if there is no score is get the bad things off ur report, which isn't that hard... if they look at the past, and there is no negative stuff, and they can't see the score..... ya know?

[sbfuller]

i couldn't see them doing away with the score though... how will lenders know what interest rate to use?

scores are kinda a joke anywhay though... mine varies by over 90 points based on just the different reporting agencies.... 659 with one, trans-union report is 752. oh well, i know which credit report to use

[txferrari]

When will this take place?

From what I hear...by the end of the year. Most likely towards the end of 08.

My lenders say its a good thing. Said credit was based like this in the 80's so. We'll see. Im somewhat sceptical thinking it will be worse for the people with bad credit. I just say, play it safe and get that credit fixed.

For example. I got a guy approved..amazingly with a 610 credit score. Of course, he paid a 19% interest. That probablly wont happen with the new credit system so.

[txferrari]

i couldn't see them doing away with the score though... how will lenders know what interest rate to use?

It is what I've been told. Believe it or not.

I have no further information. I was just told...by a Wells Fargo and CitiFinancial lender that its on its way so.

[txferrari]

I would think that would help people with bad credit. because all u have to do if there is no score is get the bad things off ur report, which isn't that hard... if they look at the past, and there is no negative stuff, and they can't see the score..... ya know?

Exactly. Thats why im saying clean clean clean now.

[DirtyRed]

I think there was a Senate or House finance committee hearing sometime last summer regarding a ban for insurers to use credit scores as a way to up payments for insurance coverage - not lending. I didn't think it went anywhere???

[cogs69]

http://www.newsday.com/business/yourmoney/ny-bzcov0127,0,2823915.story

[txferrari]

Good find Cogs.

[Moody]

Very interesting!

[issanni]

very intersting.......glad to hear it actually.

[RinasDaddy]

Im trying

[Squoddybody]

:thumb: Thanks for the good advice! It's always a good idea to clean it up anyway- now it's more urgent! :thumb:

[sixshooter1125]

How can I cleanup my credit?

[Chris24]

i like my own credit score system.

i get 0% interest, never pay any fees, never get in debt, and can never have my stuff repo'ed....

its all in my new soon to be published book called...

"pay cash, and dont buy crap you cant afford." :thumb: