As the mortgage and default calamity persists to affect the economy, the FICO score isn’t regularly talked about. If people reviewing the tons of the current distressed properties would locate people with outstanding credit foreclosing.
These people often got credit centered only on their FICO rating. The news regularly indicate all you needed in the recent few years was a modest FICO rating. But at the moment the idea has changed plus the use of the FICO score is being reexamined.
First because many of these loans are founded on FICO scores only and a higher intensity of research by the creditor is now needed to get the mortgage. Thus, it is might take many additional components such as: income.
Also because many defaults were by those who were said to have excellent credit, the bar might be hiked. Lenders often pool consumers into series of scores and employ this to determine approval and interest rate. The effect would be a good credit score would be much higher than it was in the past.
Also, the minimum score might be raised. Often the familiar floor for mortgages was 620. Above this level, you could belive the loan would be granted, however it still didn’t guarantee it. Furthermore, if a person was under this level it usually would indicate you are eligible for a below prime mortgage.
All these transistions are happening now. The issue is where your credit will stand after the crisis.