The past several years have often seemed packed with high-profile weather events.
Now, lenders and credit reporting agencies are taking note and are taking special precautions to lessen the odds of another type of harm. The moves shield from harm the credit scores of people who missed loan payments due to severe weather.
Both VantageScore and FICO are developing new credit scores that incorporate nontraditional data.
But will more lenders — many of whom still rely on the plain-Jane, credit-based FICO score — actually use it?
It’s no shock that during the devastating economic downturn, a lot of people went from good credit to bad, as job losses and foreclosures took their toll. But here’s a surprise: According to FICO data, the number of people with excellent credit didn’t fall during the recession — it grew.
“Many people seem to think that everyone’s FICO score must be down these days. However scores have moved in both directions,” says Rachel Bell, senior director of global scoring solutions for FICO.
A warning to credit card holders: The U.S. government’s borrowing problems could soon become your borrowing problems.
Right now, in Washington, politicians are fighting over whether to raise the U.S. debt ceiling — which determines the amount of money that the nation can spend on its debt — above $14.3 trillion. If the debt ceiling isn’t increased, the United States won’t have enough money to pay all of its bills. That could result in a default on its financial obligations.
An undisclosed number of HSBC bank customers apparently saw their credit scores briefly tumble because of a credit reporting error that occurred April 1.
This was no April Fool’s Day prank: Credit bureau Experian says an “isolated administrative error” altered the information on some HSBC customers’ credit reports. According to an MSNBC report, that “glitch” in Experian’s credit reporting “temporarily torpedoed an undisclosed number of consumers’ credit scores.” MSNBC added that HSBC customers who pay for credit monitoring services became aware of the error after they received alerts about a sudden fall in their credit scores.
Borrowers weren’t laughing.