Louise Scoggins' Blog: Buying

Springtime Promises New Credit Scores for All…

Fair Isaac Corporation, the company that makes the FICO credit score used by most lenders, has revamped their scoring systems in hopes of determining what borrower is more likely to default on their loan. Fair Isaac last adjusted their scoring systems earlier this decade, and is now accelerating the release of "FICO '08" under the demand from lenders to have a better way to determine and manage their risks. The new system will be available for lenders to test and / or use this spring.

The new system will look a little harder at the borrower's credit history. FICO '08 will be more forgiving on borrowers who have occasionally defaulted but have overall a good credit standing, and be harsher on the borrower who…