Hot topics on credit and FICO scores, you asked, I responded!

February 2nd, 2010 10:24 AM

How are FICO scores calculated for married couples?

Married couples don't have a joint FICO® score, they each have individual scores. The difference is that when you are single you usually only need to worry about your credit habits and profile. However, when you become married your spouse's credit habits and profile have an impact on yours. For example, if you have a credit card in both of your names and it doesn't get paid on time, that can affect both of your FICO scores – and not in a good way.

 

If lenders are going to be changing their lending requirements, how can I know if I qualify for affordable financing?

The surest way to get the most up-to-date and accurate information is to contact a number of lenders for their FICO® score requirements before shopping for credit. It's also a good idea to obtain your current FICO score so you'll know exactly where you stand in the eyes of these potential lenders.

How does refinancing affect my FICO score? What about if I modify the terms of my loan?

Refinancing and loan modifications can affect your FICO® score in a few areas. How much depends on whether it's reported to the credit bureaus as the same loan with changes or as an entirely new loan.

If it's reported as the same loan with changes, three pieces of information associated with the loan modification may affect your score: the credit inquiry, changes to the loan balance, and changes to the terms of that loan. Overall, the impact of these changes on your FICO score should be minimal.

If it's reported as a "new" loan, your score could still be affected by the inquiry, balance, and terms of the loan, – along with the additional impact of a new "open date." A new or recent open date typically indicates that it is a new credit obligation and, as a result, can impact the score more than if the terms of the existing loan are simply changed.

 

Credit questions? Please feel free to call or email me with any questions you have about credit. If I use your question, you could win dinner for two!!

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