Knoweth Thy FICO

Knowing Your FICO Score is Critical and Essential

With the financal crisis in full swing and lenders tightening up their aprovals, lots of folks are now wondering what they have to do ito improve their FICO score - you know, the credit score that is assigned to you and reported by the various credit reporting agencies.

Establishing a good credit score and maintaining that score is super important if you want to get an automobile loan, a credit card, a new mortgage or refinance, etc. Nowadays that score may even influence if you can rent an apartment or get a job

Due to the financial turnaround, coupled with the changing ways that consumers have been using their existing credit, the credit scoring system for FICO is being changed. Now called FICO 08 (the 4th revision of the FICO credit scoring formula), the latest revision to the formula has some significant changes which will likely help some consumers while hurting others.

For one thing, the FICO 08 revision closes the loophole that allowed another person to "inherit" another person's good credit rating. Until the revisio, this was a way for other users (called authorized users) of a bank credit card to establish or maintain a credit rating. This tactic was used by college students and wives especially and it became a super utilized tactic by credit repair companies.

People trying to establish their credit for the first time or people trying to rebuild their credit score will have to go with joint accounts which is more risky to all parties.

To read more, visit the "Knoweth Thy FICO" article on the Bad Credit Auto Loans Blog.

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