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I found this article by Gerri Willis on CNN Money yesterday, about the FICO '08 formula, which improves fairness for those with only minor credit infractions. If you have a sporadic late payment, a problem with an account for less than $100, and otherwise have a good credit history, these small issues won't hurt your FICO score nearly as much as in the past. Studies have concluded that minor infractions like these are not predictors of bigger financial problems in the future. Unfortunately, only TransUnion is adopting the new formula.
It angers me that Experian and Equifax apparently feel its OK to allow affected consumers to be overcharged using the old formula, and I've blogged about it here. This reminds me of the oil companies who are quick to raise prices when crude prices rise, but seem so very slow to drop gas prices when crude prices fall. I'm not sure there's anything that can be done about this, but I'd love to hear people's suggestions. Maybe write my congressmen, maybe try to engage Gerri Willis to be more forceful in exposing this. Any thoughts?
It angers me that Experian and Equifax apparently feel its OK to allow affected consumers to be overcharged using the old formula, and I've blogged about it here. This reminds me of the oil companies who are quick to raise prices when crude prices rise, but seem so very slow to drop gas prices when crude prices fall. I'm not sure there's anything that can be done about this, but I'd love to hear people's suggestions. Maybe write my congressmen, maybe try to engage Gerri Willis to be more forceful in exposing this. Any thoughts?