FICO, President Obama and the future of consumer protection

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  Friday morning was a momentous day for FICO—and for American consumers. President Obama arrived at the Consumer Financial Protection Bureau on Friday to sign an executive order to improve consumer protection and identity theft prevention. The initiative is called the BuySecure program.   FICO was an active participant in this event, and we are honored to be able to contribute to the program.   Millions of Americans have fallen victim to data breaches in the last year as a result of weak security systems. Because of this, the President has decided to take action. Before signing the executive order, President Obama explained, “we've all experienced the benefits of new technologies that let us buy and sell things faster and more efficiently than ever before. … [Read more...]

Understanding how lenders
use credit scores

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You already know that most of the top lenders (90% of them) use FICO® Scores (the top name in credit scores) when making lending decisions (probably because we’re always telling you about it). But what does that actually mean? What really goes down when you apply for a loan? Whether it’s an automated approval process or a 60-day mortgage close, a lender is doing a lot to figure out if you’re going to pay them back on time or not. Here are a few things that might help you understand the approval process.   FICO Scores are designed to help evaluate your risk FICO® Scores aren’t just an arbitrary number provided on a whim. They are based on complex, mathematical algorithms that statistically evaluate a consumer’s credit risk with a point system. Points are assigned for … [Read more...]

Introducing industry-first technology from myFICO

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We have a huge announcement to make. Actually, make that four huge announcements. When we introduce new technology and features, we really like to make a splash.   We’ve listened to your requests, complaints, suggestions and praise and developed three new products that we think you’re going to love. In fact, we’re leveraging technology that’s never before been available to consumers. So without further ado, allow me to introduce three new products and more from myFICO.   FICO® 3-Bureau Credit Monitoring For the first time ever and exclusively at myFICO, you can now monitor three FICO® Score — one from each credit bureau — and monitor all three of your credit reports. This intelligent new product will help you get a better understanding of your full credit picture. … [Read more...]

Revolving vs. installment credit: Which type of credit is best for you?

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  With the economy recovering, consumers are slowly starting to gain more confidence. Many people are beginning to think about expenditures they have been holding off on as they felt less confident about the economy.  You know … getting that roof repaired that has been on the “fix it” list for a while, trading in that 10-year-old car or finally taking a “real” vacation instead of the “stay-cations” you’ve had over the past several years.     While some people will leverage their savings to fund these expenditures, others may want access to new credit.  If you are in this position and plan on applying for credit, now is the time to think through options and determine which is the best fit for your profile and needs. Here’s a few things you should do … [Read more...]

Trouble in paradise: Quarrels over credit

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Ah, summer, the season of romantic adventures and lazy mornings. It’s the perfect time to take your special someone on a romantic getaway or relax together by the pool. Sounds blissful.     Now say you’ve been with this special someone for a while now. Say the honeymoon period is over and things are starting to get a bit serious. When you used to talk about dropping everything and traveling the world together, now those hopes and dreams have taken on more than a touch of reality: buying a car, owning a home, starting a family. And you know it won’t be long before that special question arises: “What is your credit score?”     Surprised? You shouldn’t be. Financial health has always been a consideration in relationships. But in recent years, credit has … [Read more...]

Announcing myFICO Feature Enhancements!

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  Great News! Enhanced FICO® Score Explanation Report (based on Experian credit report) now available.           Starting yesterday afternoon, all myFICO solutions based on Experian credit report data  (FICO Standard, FICO Score 3-Report View) will now include a newly designed FICO Score explanation report design to help you better understand and manage your FICO Score.       New explanation features include:   Incorporation of positive factors impacting your FICO® Score. Positive factors reinforce the good credit behaviors of high achievers, and encourage those people who may be working to manage their credit or improve their financial health. Personalized credit analysis and comparisons to … [Read more...]

myFICO Welcomes Financial Literacy Month

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While April is the official National Financial Literacy Month, we at myFICO like to think that sound financial literacy practices should be a 24/7 common practice for everyone.     And why shouldn’t it be when having a strong understanding of how to create/stick with a budget, the benefits of investing and saving, how the credit system works, how lenders evaluate applications for credit, how interest fees accrue and knowing your consumer rights can all save you thousands of dollars and loads of time.     At myFICO, we focus on that part of financial literacy related to consumer credit and encourage everyone to participate in this year’s National Financial Literacy month with the following activities:     Check your credit reports to … [Read more...]

5 Credit Spring Cleaning Tips

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After the holidays and long winter, it’s not just your house that needs a deep clean. Your credit reports, balances or savings might be looking a little dirty, too. While you’re making a checklist of things to throw out, clean or redo, we recommend adding a few credit items to the list. In the name of the season, we’ve got 5 spring cleaning tips for your credit!   1.       Check your credit reports for any errors   It’s extremely important to make sure there aren’t any errors on your credit report. An error is usually the result of a clerical typo made when processing an application, but it could also signify identity theft. Order all three of your credit reports and make sure you don’t see anything suspicious. Learn how to dispute an error on your credit reports, and … [Read more...]

The Who, Why and How Behind Your Credit Health

As a writer in the personal finance sector, I spend a lot of time reading blogs about how to improve or establish credit. The information out there is great. I’ve come across tons of articles that offer a variety of ways to improve your credit score. Reading between the lines, it’s become pretty clear to see that there is one thing that is most important above all when working on your credit. It’s not a credit card, it’s not a budget, and it’s not a plan. No, it’s a general understanding of how your credit works, and why you have a score in the first place.   Let’s Start With The Why   Credit scores didn’t just happen. There was a genuine need for a way to gauge the creditworthiness of consumers, businesses, and even entire countries. The reality is, before credit … [Read more...]

Infographic: FICO High Achievers Show You How to Get Your FICO Score Above 800

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Our studies consistently show that people with FICO® Scores over 800 have strikingly similar credit habits. We like to call these people FICO High Achievers, and you can learn from all 36 million of them. Check out this infographic and compare your credit habits to theirs. How do your credit habits measure up?   … [Read more...]

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