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A Change in Credit Scoring
Posted on Jun 20, 2007 by Michelle Pastor
Adding an authorized user to a credit account has been an easy way to help a friend or family member increase their score by, in essence, lending them your good credit history without their having to pay the bill. Unfortunately, companies popped up that match those with good credit scores with others that are willing to pay to boost their credit score. According to a Sun Times article, in an attempt to end the deception that hurt lenders,
Now, Fair Isaac, the company that created FICO, the most popular credit scoring system used by lenders nationwide, has announced that its new scoring model will no longer factor the scores of "authorized users" into its FICO accounts.
Unfortunately, women may be affected negatively by this change. Some are only authorized users on their spouse’s credit accounts, so their credit score may plunge because their score will no longer take into account the good, long credit history of that account.
A good tip for everyone:
Get your free credit report from www.AnnualCreditReport.com to make sure that you are a joint holder, not an "authorized user" on any credit card account.
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