Fair Isaac Corporation Announces New Credit Score

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Recently, Fair Isaac Corporation — also known as FICO — announced a new score intended to help people who have little to no credit history receive approval for financing.

This alternative score is being tested as a pilot program among 12 of the largest credit card issuers in the United States to identify consumers who have difficulty getting approved for credit.

These consumers — previously considered “unscoreable” — can now be scored based on alternative data, according to FICO. Currently, FICO is testing the pilot program and alternative scores, but they hope to have the score based on alternative data available to lenders later this year.

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Credit Stability: Five Debts You Don’t Need

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Debt is an essential part of credit health. Without it, the credit bureaus cannot grade your money management skills or level of responsibility. While you may think every positive account should benefit your credit score, there are other factors to consider:

  • How does this purchase affect my savings?
  • Am I wasting money by choosing this method of financing?
  • Is there a better way to buy what I need?

Ask yourself these questions as you review the following revolving and installment debts. What you learn could help you avoid unnecessary pitfalls.

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Do taxes affect your credit score?

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According to a survey recently published by Lexington Law Firm, 23 percent of Americans reported they rely on their tax refund to pay bills, so a delay would affect their financial stability.

But not everyone knows that taxes can impact their credit scores — not just their ability to pay down debts or monthly bills, especially if an individual owes money to the Internal Revenue Service.

It’s extremely important to work with the IRS to pay off the remaining taxes. The consequences of not working diligently with the IRS to reconcile the debt can impact a person’s credit score.

How?

The IRS can file a tax lien in court, giving the federal government actual assets. According to IRS.gov, “a federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt.”

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How Divorce Impacts Your Credit

So half of America’s been divorced. We get to see that statistic too often in the newspapers and for half of us, we’ve gotten to see it in our lives. Unfortunately the pain doesn’t start or stop when the judge issues the divorce decree. So if you’ve ever been divorced, you know exactly what I’m talking about. The ripples from that flow out in every direction in so many parts of your life and frankly it’s almost crazy to talk about credit reports in this context although that’s what we’re here to talk about.

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Personal Finance Fixes: Three Online Tools

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When it comes to financial strength, credit repair is only part of the equation. Maintaining a positive income, budget, savings account and investment portfolio is essential. Without these tools, the path to credit damage is swift and unavoidable. If you’re looking for organization and clarity, look no further than the following online sources. They will help you establish healthy money management skills.

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