Cre
Credit Scoring
Topic
N/A
Accuracy
Recent Predictions
Incorrect: 0
Pending: 19
Unrated: 0
Prediction
Author
Predicted at
Status
Video
A new credit scoring algorithm is being developed and implemented that will allow individuals to obtain credit cards even without a prior credit score, considering new factors beyond traditional metrics.
"53 percent of Americans are getting turned down due to bad credit and even worse 45 million American..."
Aug 9, 2021
Pending
By the end of the year, banks will consider factors like average account balance and overdraft history to assess creditworthiness and offer more affordable financing.
"under this new program which would go into effect by the end of the year Banks would be allowed to t..."
Aug 9, 2021
Pending
Bank of America and JP Morgan have already approved 700,000 additional customers for credit cards since 2016 by using bank account balances instead of traditional credit scores.
"it's said that both Bank of America and JP Morgan have implemented something similar having reviewed..."
Aug 9, 2021
Pending
Bank account data will soon be shareable between companies, enabling credit card approvals from different institutions even without direct banking relationships.
"and pretty soon that bank account data could be shared between companies allowing you to get a credi..."
Aug 9, 2021
Pending
Fannie Mae and Freddie Mac are exploring alternative scoring options for lenders to include more individuals in the credit system and reduce reliance on high-interest payday loans.
"Fannie Mae and Freddie Mac are also considering allowing lenders to use different scoring options wh..."
Aug 9, 2021
Pending
Companies are using alternative data like phone bills and magazine subscriptions to assess repayment ability, and this approach has boosted credit volume over the last decade.
"some companies are even willing to take into consideration phone bills and magazine subscriptions is..."
Aug 9, 2021
Pending
The Ultra FICO score, which considers cash reserves in checking, savings, and money market accounts, has contributed to a substantial decline in subprime credit scores.
"partially this was due to a new scoring algorithm called the ultra FICO which factors in how much ca..."
Aug 9, 2021
Pending
Congress is proposing the 'Protecting Your Credit Score Act of 2021' to develop its own non-profit credit scoring model, believing the current for-profit system is flawed.
"Congress wants to take control of the situation by developing Their Own Credit scoring model is outl..."
Aug 9, 2021
Pending
Proposed changes include banning credit scores for job applications, reducing the reporting period for missed payments and defaults from seven to four years, limiting unpaid medical debt reporting to one year, and protecting credit files for those impacted by COVID-19 who claimed forbearance.
"they want to ban credit scores from being considered on a job application missed payments and defaul..."
Aug 9, 2021
Pending
A credit score is only one factor; other important indicators of financial stability include account balance, spending relative to income, overdraft history, rent payment history, and engagement with online content.
"a credit score is only one small component of a person's overall Financial stability other factors i..."
Aug 9, 2021
Pending
Lending to someone with no credit score but significant savings and timely rent payments is preferred over lending to someone with a high credit score who lives paycheck to paycheck.
"I would much rather lend somebody money who has no credit score but they keep ten thousand dollars i..."
Aug 9, 2021
Pending
A new scoring model will provide more people with access to affordable credit, bridging the gap for those without credit scores who currently resort to high-interest payday loans, and more accurately reflecting their repayment abilities.
"it allows far more people access to Affordable Credit that could save the money like as it is now if..."
Aug 9, 2021
Pending
Critics argue the new credit scoring system might make borrowers appear less risky than they are, potentially devaluing credit scores and reports by boosting scores without a proven track record.
"critics say that the new score would make millions of borrowers appear safer than they actually are ..."
Aug 9, 2021
Pending
FICO estimates that approximately one-third of individuals without credit scores have experienced a major negative financial event, such as bankruptcy, suggesting they might be riskier borrowers, though not always.
"FICO estimates about a third of people who don't have credit scores had a major negative event like ..."
Aug 9, 2021
Pending
The expansion of new credit options is already underway, with Bank of America and JP Morgan incorporating alternative data into their lending decisions, a trend expected to continue.
"opening up new credit options could come from the right intentions it's just too early to tell but a..."
Aug 9, 2021
Pending
While Congress aims to establish a non-profit credit reporting agency to create its own credit scores, this remains a proposal with an uncertain outcome.
"even though Congress does want to create their own non-profit credit reporting agency that would cre..."
Aug 9, 2021
Pending
Lenders should consider alternative information for credit assessments, as credit scores should not be solely based on credit history alone; this expansion would benefit many individuals lacking credit scores.
"I do think that lenders should take alternative information into consideration it makes sense that c..."
Aug 9, 2021
Pending
The experience gained from managing multiple loan types and various forms of credit is valuable and should not be overlooked in credit assessments.
"I also agree that there's no substitute for actually having the experience of managing multiple type..."
Aug 9, 2021
Pending
Ideally, a consistent account balance should qualify individuals for a small line of credit, after which traditional metrics like payment history and loan types would apply. The new scoring algorithm is seen as positive for helping people transition from having nothing to having credit.
"in a perfect world a steady account balance should be enough to qualify you for a small line of cred..."
Aug 9, 2021
Pending