New Credit Scoring Hinders Homebuyers

New credit-scoring rules are making qualifying for a mortgage more challenging than ever. Our sister site WalletPop explains how Fair Isaac, the company that produces the dreaded FICO score, has introduced a new, more rigorous version called the FICO 8 Mortgage Score. Another credit score, known as VantageScore, is changing its rules, too. The good news is, it will be de-emphasizing credit history.

If you thought it was hard to qualify for loans and obtain credit in 2010, wait until 2011, when lenders start using freshly updated, more rigorous versions of two popular credit-scoring systems.

Fair Isaac, creator of the widely used FICO score, recently rolled out an enhanced version of one of its key credit scores, the FICO 8 Mortgage Score. This new score may make it tougher for many consumers to secure home loans.

Meanwhile, another credit score growing in popularity, the VantageScore, is also undergoing significant modification and will be available to lenders starting in January 2011.

Read more at WalletPop.com.

For more on credit scoring and related topics, see these AOL Real Estate guides:


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