Consumer Payment Card News

FICO Tweaking

The renting out of credit card accounts by some individuals with solid credit to help others with weak credit artificially boost their credit scores has come under scrutiny. As a result, the nation’s leading credit score generator says it is adjusting its scoring formula to wipe out the impact of the practice. Under the scheme, some consumers have temporary added others as authorized users on their credit card accounts that have a long history. In some cases, the scheme has produced thousands of dollars in income to participants. Fair Isaac says it will remove “authorized user accounts” from consideration in its latest “FICO” scoring model due out in September. Fair Isaac says the action is intended to protect lenders and “FICO” scores from abuse of authorized user credit card accounts by a new kind of credit repair service that sells consumer credit card histories to credit applicants in order to purposefully misrepresent the applicants’ own credit history to lenders and other businesses. Since the “FICO” introduction in 1989, more than 100 billion credit scores have been delivered. For more information visit: “http://www.myFICO.com”:http://www.myFICO.com

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