Fair Isaac is going to change their FICO score modeling effective September 2007 to correct the "authorized user" loophole currently being used by many as a way to boost scores with the old model. These changes will instantly lower scores for millions of borrowers. It doesn't matter if you have been added as an authorized user on someones account 5 years or 5 days ago, your FICO scores will be affected by this remodeling. Fair Isaac has created new software to incorporate this new field of "authorized user" and will be implementing the change this fall. The primary account holder will not be affected and will not suffer from points being taken off of their score, only the person that was added to the account will be rescored and ultimately end up losing points from their FICO score. The estimated range could be as much as 100 points. What does this mean in relation to qualifying for a mortgage?....It could mean a drop in FICO scores will prevent you from qualifying for a home loan at the market interest rate or even worse denying you altogether. And credit cards you have opened after the authorized user loophole, could be affected since all Credit Card institutions periodically do a "soft pull" into your credit history to make sure nothing has changed since the time of approving you, believe me, they are looking for any reason to raise the interest rate and change the terms on your revolving debt. Please call me for a Credit Check-Up if you think you will be affected by this new change. Direct (847) 321-0814 or use the contact form below. |
| Authorized User Loophole Caves In |
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| Benchmark Mortgage | 1750 E. Golf Rd., Suite 310 | Schaumburg. IL 60173 Illinois Residential Mortgage Licensee |
