Credit bureau-based risk scoring systems, their formal title, have been commercially available since the late 1980s. They were initially used by credit card issuers but were quickly adopted by other types of lenders. The last holdout was the mortgage lending environment, but that too changed. In the mid 1990s, Fannie Mae and Freddie Mac informed mortgage brokers and lenders that they would have to begin using credit scores as part of the mortgage decision-making process. […]
No doubt that millennials are financially cautious which is a fact that could be making it much harder for this generation to get low-cost loans or credit cards. Unlike other older generations, many millennials are reluctant to take on new debt even as their finances improve, according to research from VantageScore that was provided exclusively to USA TODAY. The problem is lenders still consider these conservative borrowers with fewer credit accounts as riskier. As a […]
Has the plight of the conventionally unscorable worsened? Unfortunately, based on a recent VantageScore analysis, it has been exacerbated. The overall population in America has increased dramatically, even though the last decade has seen the slowest growth rate of all times. As the overall population has increased, so has the number of consumers who are not scoreable when conventional credit scoring models are used. Indeed, according to the Consumer Financial Protection Bureau, about 1 in […]
You worry too much about money and that’s the problem! Financial stress is one of the things that will aggravate all kinds of health problems- there’s adequate research to support this claim- and I am talking about health issues like constant migraines, insomnia, heart disease, and to some extent weight gain, and sometimes weight loss. Money problems will rip your relationships apart and it will mess up with your peace of mind. But all that […]
When borrowing money, you will likely need to make a decision about whether to get a secured loan or an unsecured loan. But what’s the difference between these loans? What Is a Secured Loan? This is a loan that has collateral, something valuable is attached to the loan just in case you default on the loan, for instance, a car or a home. The bank or the lender will request you to provide the collateral […]
