There is a new credit score looming on the horizon that tracks you a little more closely than the old credit scores. CoreScore, as it’s called has been launched by CoreLogic to aid and assist mainly mortgage and home equity lenders to gain a better prospective into their potential borrowers. While the CoreScore credit report became available to all types of lenders last Wednesday, the actual score will be ready to debut in March.
If you are one of the few out there who have always paid everything on time and have never skipped out early on a lease, or missed a payment on a payday loan, then you shouldn’t have anything to worry about. For the rest, there is no hiding. CoreLogic has been keeping a wealth of information on just about everything that the three credit bureaus don’t typically report. They have now formed a partnership with FICO (Fair Isaac Corporation) to formulate a new consumer score on these items.
Although CoreLogic may not be a familiar name to most consumers, it has been around the credit business for many years and already is a part of pulling your credit scores from the three bureaus together in a uniform report to give to potential lenders; so don’t be surprised at how much information they already have about you. They have just taken credit reports to a new level now, one which in the current economy may not be good news to most Americans. Next year, for example, they will begin to evaluate including even more information such as your history of utility bills/payments and cell phone bills.
“Lending is very constrained and origination volumes need to grow to make for a profitable mortgage business,” said Joanne Gaskin, director of product management global scoring at FICO. “So lenders are looking for ways to expand, but to expand safely.” The hopes are that this new score will give the mortgage companies a boost to start lending again. There are good points to make on both sides of this argument but whether you agree with it or not, it’s here and being used in the market already.
The good news on this is that they are prepared for mistakes and have taken the necessary steps for consumers to dispute inaccuracies that may show up on the report, much like the current bureaus do now. Within a year, the new report will be available at AnnualCreditReport.com, and I would urge everyone to obtain a copy and see what shows up. Don’t be caught by surprise when trying to get a loan. You may not be turned down completely by your CoreScore, but you may get charged a higher rate or given different types of loan terms. Be prepared.
Kim Shuford
Oh great, another way for them to track us! Thanks for the heads up on this. I had no idea. Not to happy about it.