The Fair Isaac Corp., better known as FICO, is the most widely recognized and used credit score in the nation. They have recently adjusted their metrics in a way that helps borrowers qualify for loans much easier than in the past, since the recession. This action should help Salt Lake City Realtors sell more property, as mortgage money will be more available and more buyers will qualify. The Primary FICO Changes FICO carefully protects its algorithms and formulas to thwart people from "beating the system." However, the major changes announced recently are more straightforward and clear than the consistent "tweaking" that FICO typically makes in its calculation formula. The significant changes center on two issues that have been debated for eons, it seems.
- FICO will no longer consider paid collections in their credit score calculations. Consumer credit scores have historically been hurt by collections even after these collections were paid in full.
- FICO will now apply less weight to unpaid medical bills that have been given to collection agencies. In the past, FICO penalized consumers for even the smallest unpaid medical bills.