CREDIT RESTORATION TIPS!

Major differences between FICO® Score 8 and FICO® Score 9 credit-scoring models Here are the highlights. 1. Paid collection accounts matter less. If you’ve paid off a collection account in full, it no longer counts against you with FICO® Score 9. With FICO® Score 8, paying off a collection account doesn’t necessarily help your scores. That’s can be an issue, because collections can stay on your credit reports for a long time. 2. Medical collections matter less. Until recently, there wasn’t a significant distinction between medical collections accounts and other types of collections accounts — at least in terms of their impact on your credit. But newer credit-scoring models, such as FICO® Score 9, deemphasize the impact of unpaid medical collections accounts. 3. Rental payments matter more. FICO® Score 9 cares if you pay rent on time, including rental payment history as a factor in your scores — provided your landlord reports it to at least one of the three consumer credit bureaus. This can be a boon to those who have just started building credit from scratch and don’t have much lender information on their credit reports. Knowledge is Power and Credit is King!