Just paying bills on time may no longer be enough to keep a good credit score. According to RIS Media, things are about to get very personal,
But in an attempt to develop a more well-rounded picture of a person’s finances beyond credit, tools are being developed to help the lending industry dig deeper.
Fair Isaac Corp., or FICO, the company behind the widely used scoring formula, and data provider CoreLogic last week announced a collaboration that will result in a separate score that will be available to mortgage lenders and incorporates information that will include payday loans, evictions and child support payments. In the future, information on the status of utility, rent and cellphone payments may also be included.
Apparently lenders want to know a whole lot more about the financial stability and history of a borrower. Big Brother is here to stay!
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