Huge FICO Changes ... Must Read

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1) Medical Bills have a decreased weight, paid or unpaid.


2) All PAID COLLECTIONS... they no longer re-age and decrease your FICO :-)  Instead, all PAID COLLECTIONS = don't factor in your score AT ALL!!!!


3) This new "FICO 9" model will initially be used for Car loans and Credit Cards.... so it will not help you get a mortgage, that is prob. a few years off as the mortgage industry lags by 2 generations of formula's on average.



These are the two main changes.  This seems like good news, but the average score will go up, so everything will be re-adjusted a 750 FICO today will not get you the same benefits as a 750 FICO yesterday....



Basically gives gives the collection agencies lots of leverage.


The good news is, if one has a long history of charged off or unpaid accounts, they can significantly decrease the 7 year window of having bad credit no matter what.

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good news thanks, did not know that about paid collections not factoring into the new score.  That will actually help us gain leverage in removing it entirely from the credit report in negotations for those settling and paying a loan. 

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