Credit Scoring to Change!

CoreLogic and Fair Isaac Corp known as FICO, recently 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 cell phone payments may also be included. 

Separately, last month, the Experian, Equifax and TransUnion, began providing estimates of consumer income as a credit report option.  And, earlier this year, Experian began including data on on-time rental payments in its reporting. 

This new information could either help some potential homeowner’s to obtain a loan or could be detrimental to those who are on the board of qualifying for a loan. 

The CoreLogic – FICO partnership won’t result in a credit score that will rule out a borrower for a mortgage backed by Fannie Mae, Freddie Mac or the FHA, which together own or guarantee at least 90 percent of the mortgages being written.    That’s because the Experian, Equifax and TransUnion “tri-merge” report required for such a loan does not rely on CoreLogic data.  But it could mean either more or fewer mortgage fees or a higher or lower interest rate charged by lenders that in today’s cautionary lending environment have heartily adopted risk-based pricing.

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Payoff your Debt before Saving for Retirement

Day 4 - Paying off debt
Image by quaziefoto via Flickr

 

A lot of people are trying to save money for their Retirement years and have questions concerning how to go about saving and paying off their debts to prepare for retirement. 

The following information was given by Steven Zeller, a Gold River, CA, based investment adviser regarding credit card debt and publised by RISMEDIA:

If you are heavily in debit, he would not encourage anyone to go into bankruptcy proceedings if he or she can help it.  It creates a lot of stress and is not the best for your self-esteem.

If you have multiple credit cards to payoff, I would begin paying off the credit cards, starting with the smallest one first, until they are all gone for good.

It may be painful at first, buy you will increase your cash flow over time by eliminating the monthly payments.

He also stated,  “At the end of the day, if you pay into an IRA and Roth IRA instead of paying down your credit card debt, you will still have debt. ”

 Related articles

5 Reasons To Stop Saving for Retirement(money.usnews.com)

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