LIFamilies.com - Long Island, NY


RSS
Articles Business Directory Blog Real Estate Community Forum Shop My Family Contests

A credit score for those with no credit history

Notebook Save to notebook Email Email article Print Print article More More articles

Lenders are being offered a new scoring process for people with little or no credit history. These are usually young people, recent immigrants, and low-income individuals. The new scoring plan will make it easier for them to get credit cards and loans without paying high interest rates.

Fair Isaac Corp., the creator of the FICO credit score used by most lenders, recently started the new system. They will be able to provide a score ranging from 150 to 950 that reflects financial health.

The score is based on how well consumers handle their bank accounts or payments on retail purchase plans. Fair Isaac expects to add other sources, such as rent payments. Initially the score is available only to businesses, but the company says it will soon offer scores directly to consumers.

Although 160 million adults in the U.S. have enough credit information to qualify for a standard credit score, a many as 55 million fall below that screen, according to Fair Isaac. This is a huge customer base, and lenders want help assessing it.

Novadebt credit counseling agency (Freehold, N.J.), cautions that the new scores could lead to a higher debt load for people who don't manage debt well.

Long Island Money & Careers Articles > A credit score for those with no credit history

New Businesses
Carleton Hall of East Islip
J&A Building Services
LaraMae Health Coaching
Sonic Wellness
Julbaby Photography LLC
Ideal Uniforms
Teresa Geraghty Photography
Camelot Dream Homes
Long Island Wedding Boutique
MB Febus- Rodan & Fields
Camp Harbor
Market America-Shop.com
ACM Basement Waterproofing
Travel Tom
Yoga Womb/ SECS talk

      Follow LIWeddings on Facebook

      Follow LIFamilies on Twitter
Long Island Bridal Shows