Experian Cuts Access to Credit Scores

Fair Isaac Corp. hopes new scores will better predict consumer defaults

(NEWSER) - New credit scores intended to make identifying bad risks easier make their debut today, with TransUnion taking the lead in offering “FICO 08” metrics, reports the Wall Street Journal. The new formula is more forgiving of one-time lapses than its predecessors, but popularizing it may take years, according to developer Fair Isaac Corp. More»

Credit scores sink to new lows

(NEWSER) - Thanks to the Great Recession, the credit scores of millions more Americans have sunk to new lows. New figures show that an astounding 1 in 4 households are now in the lowest credit category, boosting the number of those considered poor lending risks to 43 million. Even more consumers are expected to fall into this category in the coming months. More»

(NEWSER) - For many unemployed Americans, a new trend is keeping the prospect of a new job out of reach: detailed credit checks of prospective employees. Once used mostly for government positions, cheap credit checks are now routine at private employers seeking to cull huge applicant pools. Businesses say they're just being responsible, but job counselors are nervous that the unemployed are being caught in a Catch-22. More»

Average drops 6 points, likely to fall further

(NEWSER) - Consumers are caught in the credit crunch, and their scores are starting to show it, USA Today reports. The average TransUnion credit score fell 6 points between the third quarter of 2008 and the first of 2009, and the group’s financial services director expects it to fall even more through 2010. “Consumers are feeling the bite of the current recession,” he says. “It’s not surprising.” More»

Lawmakers want employers to prove credit reports are necessary

(NEWSER) - Several states and Obama administration officials are seeking restrictions on employers that unfairly screen out job applicants using credit checks, USA Today reports. Spiking unemployment and mortgage foreclosures brought on by the financial crisis have hurt many, and lawmakers say trustworthy people are being shut out of good jobs. Some 43% of US employers check applicants for overdue payments, up from 36% in 2004. More»