New FICO 8 score catches on

FICO announced today that more than 2,700 lenders are using its latest and greatest consumer credit scoring model known as the "FICO 8 Score." According to FICO's own research, its newest credit score improves credit risk prediction by as much as 15 percent over earlier generations. The score debuted in 2009, but the process of testing and validating a new scoring model takes varying amounts of time with different financial institutions.

"Some of the larger card issuers are running FICO 8," says Robert Duque-Ribeiro, vice president and general manager of scores at FICO, who could not say how many credit card issuers had adopted the new formula. "There's a very large one that has moved completely to it."
How FICO 8 differs from previous versions

Here are a few key differences between FICO 8 and previous generations of the FICO score:

Payments: FICO 8 is more lenient toward the rare missed payment. A "one-time mis-happening in terms of delinquency" doesn't penalize the score as much compared to previous models, says Duque-Ribeiro. "The flip side is that if that happens quite often they actually get penalized more than in the prior versions."

In addition, FICO 8 ignores small debts in collections and public record items that have an original balance of less than $100.

Credit usage: The new FICO score is more sensitive to high credit usage than earlier models. In other words, if you max out your cards, your FICO score will lose more points than it would have in the past.

Authorized users: If you're an authorized user and don't have a legitimate relationship to the primary cardholder, such as husband and wife, your FICO score might not benefit. FICO 8 minimizes any score inflation caused by the controversial practice of "piggybacking" as an authorized user on the seasoned credit account of a stranger. Duque-Ribeiro says that FICO 8 uses "a methodology that allows us to be still compliant from a regulatory perspective, but actually make sure that the folks that are trying to do that don't get the benefits of lining up on the back of a consumer's good credit."

Not everything about the model is different. It has the same 300 to 850 score range, loan shopping inquiry treatment, minimum scoring criteria and score reason codes (top factors that lowered the credit score), according to myFICO.com. The five factors that make up the score remain important, so it's still crucial to pay bills on time, keep credit card balances low and apply for new credit only when needed.
When can you buy FICO 8 scores?

FICO 8 scores are currently available to lenders through Equifax, Experian and TransUnion, but aren't currently sold to consumers. The actual brand names at each credit reporting agency are FICO Risk Score, Classic 08 from TransUnion, Beacon 09 from Equifax, and Experian/FICO Risk Model v08 from Experian.

MyFICO.com currently sells FICO scores to consumers that most lenders are using, from scoring models that date back to 2004. That could change soon as more lenders adopt FICO 8. "It's probably a question of a few months before we'll make it available to the consumer," Duque-Ribeiro says.

In the future, credit card issuers may have to disclose free credit scores to consumers when compelled to do so by new federal regulations. Consumers would receive the score actually used, even if that score happens to be one not currently sold to the public, such as the FICO 8 score.

By Leslie McFadden

Which credit bureau is the most popular to use by home loan lenders?

Question: I know their are three...Experian, Equifax and TransUnion, but rather then checking all three I was advised that essentially loan/mortgage officers typically use only one to check eligibility for a home loan. What is the most popular credit bureau used? I am in the process of looking for a home, and want to make sure I know which score will be pulled considering all three have different scores. Thanks!!!

Answer: You were misinformed. Mortgage lenders use all three. Typically they take the mid score, but some do an average. They also will be using FICO scores. Equifax will sell you FICO, but TransUnion and Experian sell Vantage (different scale). You can get FICO scores for TransUnion and Equifax at MyFico.com. Consumers cannot get FICO scores for Experian anymore. You also want to review each report and resolve any errors. If you have derogatory items, mortgage lenders will require you resolve them before you are approved.
Contact NCR Credit Plus they help remove derogatory items off all 3 credit bureaus.
866 469 6599 begin_of_the_skype_highlighting              866 469 6599      end_of_the_skype_highlighting www.ncrcreditplus.com

Over 25% of us have nasty credit scores, but they're fixable

Whether you're applying for a job or looking for love, rejection is painful, particularly when you aren't given a reason for the rebuff. "It's not you, it's me" doesn't count.
But soon, when a lender rejects your request for a loan, it will be required to tell you why.

The financial reform bill President Obama is expected to sign this week requires lenders to give customers who have been turned down for a loan a copy of the credit score used to make that decision. Lenders will also be required to give you a free credit score if you're offered a loan with a higher interest rate than the rate offered to borrowers with excellent credit.

The requirement won't be limited to lenders. You'll be entitled to receive a copy of your credit score any time it results in an "adverse action" against you, which could include everything from a higher auto insurance premium to a landlord's refusal to rent you an apartment.

The law doesn't require credit bureaus to give you a copy of your credit score when you order your free credit reports from www.annualcreditreport.com. That will disappoint a lot of consumers who want to know where they stand, even if they're not applying for a loan.

Nonetheless, the new requirement will benefit consumers, says John Ulzheimer, director of consumer education for Credit.com.

FREE REPORT: You can and should check your credit profile for free
NOT-SO-FREE REPORT: Rule helps consumers avoid free credit reports that aren't

The problem with mandating free credit scores for everyone is that lenders and credit bureaus use lots of different scores to evaluate borrowers, Ulzheimer says.

While the FICO score is the most widely used score, some lenders also use another score model known as the VantageScore. In addition, the credit bureaus have their own proprietary scores, which some sell to consumers.

The law ensures that when you're turned down for a loan, or suffer an adverse action, you'll receive the exact score that was used to make that decision, Ulzheimer says.

Once lenders start providing scores, many consumers may be surprised by what they see, Ulzheimer predicts.

"A lot of people make the assumption that as long as they're making minimum payments (on credit cards) they have good credit," he says. "I think this is going to remove any shadow of a doubt as far as where they stand creditwise."

New data from FICO show that in April, 25.5% of consumers — more than 43 million people — had FICO scores of 599 or lower. That's up from 24.1% in April 2008.

Consumers with sub-600 scores typically have serious blemishes on their credit records, such as foreclosure, bankruptcy or multiple payments that were delinquent by more than 90 days. Once your score falls below 600, it's nearly impossible to get a loan, and rehabilitating your credit could take years, Ulzheimer says.

Chapter 13 bankruptcy, in which you agree to repay your debts over three to five years, stays on your credit record for seven years. Chapter 7, which eliminates most debts, stays on your credit report for 10 years. Foreclosure remains on your report for seven years.

That doesn't mean that you'll be barred from obtaining credit until these items are removed from your credit report, says Craig Watts, spokesman for FICO. Even consumers who have filed for bankruptcy can restore their credit score into the 600s in three or four years by paying their bills on time and maintaining low credit card balances, he says.

"You don't have a big red B on your chest," he adds. "You can outgrow the bankruptcy as long as you establish a credit habit that lenders and the credit score model can see."

If your score has been depressed because of late payments, you can repair the damage in a year or two by scrupulously paying your bills on time, Watts says. The credit score model gives more weight to recent history, so the impact of delinquencies diminishes over time.

The FICO analysis also shows that 11.9% of consumers have scores of 650 to 699, down slightly from April 2008. Consumers in that group can still get credit — although at less favorable rates than borrowers with higher scores — but they're in the danger zone, Ulzheimer says.

If you're in that range, it's important to take steps to improve your score so you'll have access to credit in an emergency, he says. For most consumers, that means getting credit card debt under control.

"If you're at 650 or 680, you're in the frying pan, but you're not in the fire," Ulzheimer says. "But you're one incident or event away from being in the fire."

Loan Options for the Credit-Score Challenged

BOSTON (TheStreet) -- More than a quarter of Americans have credit scores of less than 600 (on a scale of 350-800) and most banks these days won't even consider a score below 620 when issuing mortgage loans backed by Fannie Mae(FNM) and Freddie Mac(FRE), according to Fair Isaac Corp.(FIC).

But a less-than-stellar credit score doesn't necessarily preclude someone from buying a house or car or from opening a small business. Here are some loan options for the credit-score challenged:

Car loans: Say, for example, a young couple opens a joint bank account and credit card. Then one of them secretly maxes out all the credit cards, empties the bank account, drives the family into bankruptcy and drives away forever in the family car. The other, newly single spouse is left with ruined finances and no car -- a terrible combination in areas where driving is the only way to get to work.

Or, say, someone has a lifelong history of bad financial choices.

Enter More Than Wheels. The New England-based nonprofit runs a mandatory six-week financial-education program for prospective buyers with bad credit, then negotiates with dealers and local banks to secure low pricing and low financing for those who really need cars but might not otherwise be able to afford them. The program helps clients avoid predatory lenders and predatory dealers.

"We do all the negotiating," says Debby Miller, executive director of the organization's Manchester, N.H., office. "Our clients never overpay for a car. Never."

For those in the direst of straits, the organization will provide a "bridge car" -- a rental that allows a would-be buyer to drive to work while working to qualify for eventual financing. The fee for a bridge car is $250 per month -- about what clients will end up spending on a car payment.

"We're ultimately trying to change behavior and the relationship people have with credit and money," Miller says. "The fee is part of changing that behavior ... it's almost like a laboratory to show that they can change."

The program is limited to New England, but the organization is considering requests for expansion into other areas of the U.S., Miller says.

The Effects of the Credit Card Act

Credit card issuers have stopped many of the “deceptive” or “unfair” practices outlawed by the Credit Card Act, but they are still engaging in others, according to a report released Thursday by the Pew Charitable Trusts’ Safe Credit Card Project.

The project, whose goal is to improve the safety of credit cards, analyzed the application disclosures for consumer credit cards offered online by the 12 largest banks and the 12 largest credit unions. Its findings are in its latest of a series of reports on the subject, “Two Steps Forward: After the Credit CARD Act, Credit Cards Are Safer.”

According to the latest report, credit card issuers have eliminated arbitrary interest rate increases on existing balances; over the limit fees without consent from the customer; the allocation of payments first to balances with the lowest interest rate; and disproportionate charges for minor account violations like penalty interest rates after one late payment or a second late payment in 12 months.

Such so-called hair-trigger penalty interest rates and other deceptive practices were previously common. In fact, before the new credit card law, the project found that 100 percent of the credit cards surveyed included at least one of these practices.

The researchers also found other new practices that benefit consumers that are not directly required by the new law. According to the report, for instance, less than 25 percent of all cards examined had an over-the-limit fee, compared with more than 80 percent of cards in July 2009. Nick Bourke, director of Pew’s Safe Credit Cards Project and a co-author of the report, said he guessed that the safeguard in the new law requiring prior consumer consent is discouraging issuers from charging the fees in the first place.

In addition, according to the report, only 10 percent of card offerings contained mandatory arbitration clauses limiting a consumer’s right to settle disputes in court, down from 68 percent in July 2009.

Still, the report’s news is not all good for consumers. “The implications are generally that credit cards have become safer and more transparent after this new law has taken effect, but there are some challenges that remain,” Mr. Bourke said.

As card issuers seek to make up the revenue that the now-outlawed practices brought in, the researchers noticed a rise in cash advance transaction fees. Many card issuers are still charging penalty rates, the researchers found, and are being cagey in their online terms and conditions about when such rates kick in.

According to the report, 94 percent of bank cards and 46 percent of credit union cards surveyed had a penalty interest rate for late payments and other violations. But in nearly half of those cases, the issuers were not disclosing what the actual rate was and just disclosed in statements that there was a possibly of a rate increase in response to account violations. “This is the first time we’ve seen that,” Mr. Bourke said. (CardHub published similar findings in June, looking at how the penalty interest rate policies of the big banks for future transactions stacked up.)

This, Mr. Bourke said, has implications for policy makers because it seems to go against long-standing banking regulations requiring that issuers disclose crucial pricing information — including penalty rates — when a consumer applies for a card. The project thus recommended that federal bank regulators make an effort to enforce such long-standing regulations and further prohibit deceptive penalty interest rate practices.

What effects of the Credit Card Act have you noticed?

Credit Restoration: More Than Credit Bureau Disputes

Credit bureau disputes are at the core of most credit restoration efforts and for some consumers and even professional credit repair companies, their credit restorations efforts start and end here. For some, this can be an effective strategy.


When you are disputing a negative item on your credit reports with a credit reporting agency (credit bureau), you are essentially saying "I don't feel this negative item is being reported fairly and I would like for you to perform an investigation in order to verify that it should be included in my credit file." This can be done by filling out and submitting a form on the credit bureau's website, by phone, or by mail, which is the recommended method. After receiving your dispute, the credit bureau first has to determine whether your dispute is legitimate or is "frivolous or irrelevant" (exactly what this means is at the discretion of the bureau). The legitimate disputes are then investigated by contacting the original furnisher of the reported information and requesting that the verify the listing is correct. The credit bureau have 30 days (although they tend to stretch this out) to perform this investigation after which they must delete the negative item if the original furnisher is unable or unwilling to verify its accuracy.

In many cases, credit bureau disputes are much more successful at removing negative items from your credit report than you would expect. Aside from the fact that many credit reports contain errors that cannot be verified, the fact that many information furnishers simply don't have the capacity or the desire to respond to credit bureau verification requests means that disputed items are frequently deleted even when they describe something like a late payment or repossession that actually happened.

On the other hand, when a negative item ends up on your credit report because a creditor has bad information on their books (they say you were late on a payment when you never were), credit bureau disputes may be worthless when it comes to getting this error removed from your credit report. The credit bureau receives your dispute, requests verification from the original creditor, they check their inaccurate records and verify the negative listing, and you are no closer to having that inaccurate negative credit listing removed than when you started.

While credit bureau disputes may be effective, you could make the argument that they don't work well. Credit bureau disputes can result in accurate negative information being removed from your credit reports while genuine errors continue to count against your credit score.

So what can you do if you have errors on your credit reports that keep getting verified and remain listed on your credit reports? You evolve to the next phase of credit restoration which is dealing directly with the furnishers of the information in your credit reports. It's time to bypass the credit bureaus and talk to the lenders, credit card companies, and courts that are reporting to them.

There are a number of tactics for getting your creditors to stop reporting negative information about you to the credit bureaus ranging from simply asking nicely for them to remove the listing from your credit report (goodwill negotiations), to more forcibly demanding that they prove to you that what they are reporting is accurate (information requests), to forcing them to jump through certain hoops to prove you owed them a debt in the first place (debt validation). When combined with credit bureau disputes, this full arsenal of credit repair tactics tends to produce the best results helping you remove more negative items from your credit reports in less time. For this reason, it is little surprise that most of the major credit restoration companies offer direct creditor interventions along with standard credit bureau disputes.

3 Ways Your Credit Score Impacts Retirement Readiness

Your credit score can be an important component of your financial planning. While it's possible to make it through life without ever taking out a loan, most people can't afford to buy a home or pay for college with cash.
A good credit score can help you take on an affordable loan to tackle these large expenses. Your credit score can also be an important indicator of financial health.



Here are three ways your credit score might be affecting your retirement readiness.


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1. Low credit scores are often a reflection of too much debt. Debt is the number one roadblock to a comfortable retirement and one of the leading causes of a poor credit score. Your credit utilization ratio, the amount of debt you have versus the amount available on your credit limits, makes up 30 percent of your credit score. Too much debt affects your cash flow and takes money away from other important goals, such as contributing to retirement accounts and investing. Reducing the total amount of debt you have not only improves your credit score, but, more importantly, improves your cash flow and financial health.


2. A low credit score means you pay higher interest rates. If you have a poor credit score and need to take out a loan for a mortgage or other big ticket item, you can expect to pay hundreds and perhaps thousands more over the life of the loan than if you had a high credit score. Improving your credit score means you can qualify for lower interest loans and better mortgage rates and use those savings for more important things like opening a Roth IRA or funding your 401(k) plan.

3. Your credit score can affect your ability to get a high paying job. Some employers use credit scores as a screening tool to help them determine which job candidates are most trustworthy. These companies believe your credit score can be a reflection of your ability to handle money and therefore your trustworthiness. Several states have proposed legislation that would prohibit this action, but for now this is a real threat for many job seekers. Improving your credit score may help you land a higher paying job. You can use the additional income for more important things, such as paying down debt, investing for retirement, and having fun.

Steps to Take

Improving your credit score will help you in many aspects of your financial life. Here are some ways you can improve your score:

• Understand how your credit score works. The first step is understanding how your credit score is calculated.

• Make on time payments. Your payment history makes up the largest percentage (35 percent) of your credit score.

• Pay extra on your loans. Your credit utilization makes up 30 percent of your credit score. Paying extra on your loan reduces your credit utilization and decreases the amount of interest you pay and the time it takes to become debt free.

• No new lines of credit. The average age of your credit accounts and the number of lines of credit you have open affect your credit score.

• Time. Follow these steps and practice good credit habits and you will see your credit score climb.

These steps require time and discipline, but they are worth the effort. Understanding how your credit score works and improving your score can put you on a successful financial path to retirement.

Do you have a list of clients that are Credit Challenged or have Poor Credit Scores?

Do you have a list of clients that are Credit Challenged or have Poor Credit Scores?

Do you have new clients that you cannot get them a loan because of their low scores?

Do you have clients that you have to say “sorry we can’t help you”?


NCR Credit Plus will take your potential client's enroll them into our program. Educated, counsel and get their scores loan worthy for you and your company. Our education information will help your clients get past the fears and doubts he or she has about Credit Restoration.

Every client asks the same kind of questions: "Will this work, how long does it take?"

Credit Restoration is hard work, time consuming, and an ongoing affair. It is against the law to guarantee a time frame it will take to improve or repair anyone’s credit. However, it’s also against the law to not state an “average” time frame that it will take. Our “Average” time frame is 6 months. Some files take longer and some are done very quickly, depending on the number of negative items appearing on your credit reports. We have a number of files each month that are completed within 60-90 days, but those results vary.

How much will my score increase?

Your credit score is compiled directly from both positive and negative entries in your credit report.

* if you have open accounts that you are currently paying on, you cannot record a late payment.
* If you do not have accounts you are paying on, then we will help you get some credit established.
* Use of 35% or less of your credit line will boost your score's
* Avoid a "hard inquiry’s," which can bring about a potential score reduction of five points or more.
* Your credit history accounts for 35% of your score

Here's what we think you'll particularly appreciate about our program, and what it offers you:

NCR Credit Plus's allows you to incorporate our services with your existing and new clients. We offer the highest paying affiliate program and best tracking software in our industry.

If you have a web site (Your Web-Master must add link) you can add a link offering our services.

In-depth updates about all account activity and progress made: We provide specific day/dates. Identifying all accounts that are being worked on Ex; To Do / In Progress / Deleted / No Change

Client score's can be monitor without creating a inquiry

Our services not only helped your client's get approved, but also help's them get "lower interest rates.”

NCR Credit Plus success is illustrated by a client retention and track record that speaks for itself. Please explore our site (www.ncrcreditplus.com), and contact us to receive full details regarding the services offered by NCR Credit Plus, or to answer any questions or concerns you may have.

Are you one of those people who cannot get a credit card? Having open lines of credit is a major part of your credit score, to increase your score's you may need to establish new trades lines of credit. Question is who's going to take a chance on someone who has a bad credit history.

In the beginning you have few choices when it comes to re-building up your credit, once you gain the trust of creditors, by making your payments on time your options expand and you will receive better rates. NCR Credit Plus can not only help you get credit cards, but also lead you to grantors that are right for you. While you may pay more in interest on carried charges, the benefits of bad credit cards are plenty.

There are fees associated with these credit cards in addition to the annual fee. Please read the terms and conditions for each card when applying.

www.ncrcreditplus.com 866 469.6599

Is there a statute of limitations on debt?

There are 2 main time limits: How long debt stays in your credit reports and how long you can be sued for it. If you're struggling, here's what you need to know.

Credit scores are plunging. Unemployment benefits are running out. Foreclosures are high. Many Americans are, for the first time in their lives, facing bills they can't pay.

If you're among them, you need to keep in mind that little in life, including debt, is truly permanent. Knowing something about the legal limitations on collecting and reporting debt can help you through your crisis and allow you to get back on your feet.

Debt statutes of limitations by state

There are two major types of limitations on debt that you need to know and that many people confuse.

* Quiz: Estimate your credit scores in minutes

The first has to do with how long debt problems can show up in your credit reports. Federal law typically requires credit bureaus to drop negative information after seven years. The clock usually starts ticking 180 days after the account first goes delinquent (in other words, when you miss your first payment). There are exceptions: Bankruptcies can remain on your credit reports for up to 10 years, and some debts, such as unpaid tax liens, can stay on your reports indefinitely.

3 big problems with debt collectors


The other curb on debt collection is the statute of limitations, which gives creditors a certain time period in most states, three to six years in which to sue you over a debt.

In either case, you'll still owe the money, unless the debt has been forgiven or discharged in bankruptcy court. Lenders can try to collect it forever -- and probably will but they can't sue once the statute of limitations period has passed.

How long? It depends

Statutes of limitations vary widely by state and by the type of debt. States often have different rules for oral and written contracts, as well as for so-called closed-end contracts, such as installment loans, and open-ended contracts, which typically (but not always) include credit card accounts.

California, for example, has fairly short statutes of limitations on most debts: two years for oral contracts and four years for written contracts, promissory notes and credit card debts. Kentucky, by contrast, says creditors can sue over written contracts for 15 years after the last payment was made and for five years on most other debts, including credit cards.

You can start your research at websites such as the Credit Info Center, which has a chart that includes links to relevant state laws.

Some other key points:

* The devil's in the details. Not only do states have different statutes of limitations for different debts, but two states may treat the same debts differently. A credit card debt might be considered an open-ended account in one state and a written contract in another. The only way to know for sure is to check your state laws or consult an attorney.

* You can inadvertently restart the clock. Generally, the statute of limitations starts ticking from the "date of last activity" on the accounts, said Los Angeles bankruptcy attorney Scott Bovitz. (If the account is still listed in your credit reports, the date of last activity should be noted there.) On a credit card debt, that could be the last payment you made or the last purchase you charged. But in some states, making a payment on an old debt, agreeing to an extended repayment plan or even acknowledging that the debt is yours can extend the statute of limitations or restart the clock.

* A creditor may still sue you after the statute of limitations has run out. Suing or threatening to sue you after the statute of limitations has run out violates the Fair Debt Collection Practices Act, but that doesn't mean it doesn't happen. To prevent the creditor from winning a judgment against you, you'll need to show up in court and point out that the statute has expired.

* The creditor may try to pick a better venue. If you sign a credit contract and move to a state with different limits, the creditor may try to sue you in the state that has the longer statute. If that's not the state in which you now live, you should protest, because generally the state where you reside is the one whose statutes should apply.


* Debts can still exist even if the creditor can't sue. Some people erroneously believe that debts are erased after the statute of limitations has run out. Although the creditor's ability to sue you has been curtailed, it can still try other methods to persuade you to pay, including calls and letters. The debt can also be sold to another collector that can renew efforts to get you to pay. A legitimate debt is truly gone only when it's paid or erased in bankruptcy court.

* Collectors can't legally restart the seven-year clock by "re-aging" the debt (giving it a new delinquency date) or by selling it to another agency. The Federal Trade Commission shut down one large collection agency, Capital Acquisitions and Management, after charging the company repeatedly had re-aged debts in its attempts to collect.

By Liz Pulliam Weston