Is credit reporting unfair to minorities?
According to MyFICO.com scoring considers only credit - related information. Factors such as race, gender, nationality and marital status are not included. The Equal Credit Opportunity Act prohibits lenders from considering this type of information when issuing credit.
Showing posts with label FICO. Show all posts
Showing posts with label FICO. Show all posts
Tuesday, June 13, 2017
Will my credit score drop if I apply for a new loan?
Will my credit score drop if I apply for a new loan?
According to MyFICO.com credit inquiries make up 10% of your credit score. Everything is relative in credit scoring. So, if you are already struggling with a lower score, inquiries will have more of an impact. If your credit history is shorter, inquiries will have more of an impact. Most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically these are treated as a single inquiry and will have little impact on the score, if done within 30 days.
According to MyFICO.com credit inquiries make up 10% of your credit score. Everything is relative in credit scoring. So, if you are already struggling with a lower score, inquiries will have more of an impact. If your credit history is shorter, inquiries will have more of an impact. Most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically these are treated as a single inquiry and will have little impact on the score, if done within 30 days.
ARE THE ALTERNATIVES TO FORECLOSURE ANY BETTER AS FAR AS MY FICO SCORE IS CONCERNED?
Are the alternatives to foreclosure any better as fare as my FICO score is concerned?
The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all "not paid as agreed" accounts and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better of worse for your FICO score.
If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact to your FICO score, While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has the potential to have a greater negative impact on your FICO score. source myFICO.com
The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all "not paid as agreed" accounts and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better of worse for your FICO score.
If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact to your FICO score, While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has the potential to have a greater negative impact on your FICO score. source myFICO.com
HOW LONG WILL A FORECLOSURE AFFECT MY FICO SCORE?
How long will a foreclosure affect my FICO score?
A foreclosure remains on your credit report for 7 years, but It's impact to your FICO® score will lessen over time. While a foreclosure is considered a very negative event by your FICO score, its a common misconception that it will ruin your score for a very long time. In fact, it you keep all of your other credit obligations in good standing, your FICO score can begin to rebound in as little as 2 years. The important thing to keep in mind is that a foreclosure in a single negative item, and if you keep this item isolated, it will be much less damaging to your FICO score than if you had a foreclosure in addition to defaulting on other credit obligations.
source myFICO.com
A foreclosure remains on your credit report for 7 years, but It's impact to your FICO® score will lessen over time. While a foreclosure is considered a very negative event by your FICO score, its a common misconception that it will ruin your score for a very long time. In fact, it you keep all of your other credit obligations in good standing, your FICO score can begin to rebound in as little as 2 years. The important thing to keep in mind is that a foreclosure in a single negative item, and if you keep this item isolated, it will be much less damaging to your FICO score than if you had a foreclosure in addition to defaulting on other credit obligations.
source myFICO.com
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