credit scores

With a strong economy over the last few years it seems as if mortgage lenders, auto lenders and others have been returning to the same dangerous lending practices that led to the Great Recession. In one of the few bright spots, Fair Issac Corp., creator of FICO scores, has changed how they calculate credit scores. The purpose of the changes is to make the FICO score a better predictor of defaults on debt. Not all lenders will choose to use the new product, but for those that do, Fair Issac is predicting a substantial reduction in defaults.

Read the referenced article and share your thoughts on the wisdom of the changes. Do they changes make sense? Are they likely to work?

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Why do you think so many lenders have gotten so liberal in their lending policies?

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