FICO Scores Too Traditional Says Digital Risk

Many consumers would feel that their FICO scores are not very accurate in showing their capabilities in handlinga mortgage loan. In fact, experts from the Digital Risk believe that one’s FICO score alone is not capable of showing just how capable a person is in his financials.

All those who have a FICO score of 690 or better then you know that you can get any loan you want. Sometimes it can be pretty unfair how lending institutions seem to be very reliant on the scores in approving loans.

According to Digital Risk FICO scores have been unsuccessful in predicting the right amount of mortgages for clients for years. Many customers and critics believe that the financial institutions must find another way to measure the capability of individuals to pay for mortgages. Credit histories could be both misjudging and unfair.

According to Peter Kassaboy, the chairman and chief executive of Digital Risk, the industry is only relying on methods that are no longer up to date and risky. FICO high scorers tend to depend on their high scores to get cheaper and better deals than those who had already fallen into the Bad Credit category.

In a study conducted in 2009, the findings reveal 588,000 homeowners having to leave their houses in 2008. This marks 18% of the total economic downfall that occurred in the financial industry during the depression. The creator of the FICO score, Fair Issac, defends that the tool allows the lenders to determine if an individual will be capable of paying through measuring their credit and history and one disadvantage of the system is the strategic defaults it imposes on those with different scores.

However, Digital Risk says that strategic default is not the only problem. The company has introduced a system which they call the “Veritas” it is capable of determining the credit characteristics of clients. This is a tool that measures the behavior of a borrower despite his credit FICO score. It will provide lenders with the idea of how a borrower will be acting when he takes on a loan.

Credit Talk for Ireland

Student loans are now being prioritized in Ireland for they have realized the importance of credit in today’s financial status in the economy. Credit is like the oxygen of the economy in Ireland however not everyone has realized the importance of credit today.

The Bank of Ireland has drafted two new schemes to help improve the credit in the country. The schemes and the increasing number of third-level students who are paying overdue are the crucial elements that could lead in the increase of the bad credit ratings in the future.

According to the CEO of the National Consumer Agency, Ann Fitzgerald, it is very important that students know the effects of their poor credit history in how their financial status in the future. A person’s credit history includes the list of lenders and account numbers you have had. Furthermore, it also contains information about the credit cards you have or those that were closed in a five year span, also it shows the loans you have and those you missed to pay.

A bad credit rating is very painful in your record. It could cause high interest rates, the loss of a job opportunity and worse, it could spell disaster for your future loan endeavors. It is important that you have a good behavioral standing and you should avoid missing payments in loans.

The Irish Credit Bureau is the agency that records the credit ratings in Ireland. It also acts as an aid for financial institutions in the country by giving the necessary information they need about loans. The agency has an up to date record of every person’s credit.

The records that they have are also designed to help prevent their clients from being victims of fraud and falling into indebtedness. The Bank of Ireland was scrutinized just recently by the Union of Students because of the new schemes it had for loans. However, according to the Welfare Officer of the UCCSU they noticed that there are plenty of students who are trying to get loans from banks.

Samsung Electronics’ Credit Ratings Advances

Standard and Poor’s, the global credit rating agency, changed the credit rating of Samsung Electronics to positive last Monday. S&P cited that Samsung’s operating performance improved as a result of its stronger position in the world’s handset market.

According to the report from S&P, the change to a positive credit rating indicates that they expect Samsung Electronics to continue its improved operating performance because of its strong positions in the global market and apparent technological leadership. Moreover, the agency confirmed that they change Samsung’s corporate credit and debt rating to “A”.

In addition, S&P reported that Samsung’s share of the global smartphone market was 30 percent in the year 2012, which is a significant increase from 4 percent during the year 2009. This increase in market share is attributed to the success of its Galaxy range of smartphones.

Recently, Samsung reported an operating profit of 6.72 trillion Won, which is its record high so far, in the second quarter of this year. It exceeded last year’s record high operating profit for three consecutive quarters.

Over 80 percent of Samsung’s sales are coming from outside the country. In fact, its cash and cash equivalents reached more or less 25 trillion Won, which is enough to cover roughly 14 trillion Won in total debts as of the end of March.

According to Park Jun-hong, a credit analyst at S&P in Hong Kong, because of the success of the Galaxy range of smartphones, Samsung’s operating performance in recent quarters were very strong. However, Jun-hong added that high concentration of earnings attached to mobile devices could create fluctuations in earnings at some point.

Park said that natural volatility and the slowdown of the global economy might pressure the profitability of a few divisions of Samsung. However, he also said that this risk can be toned down by the fact that Samsung has a well-diversified business portfolio.

How to Rent with Bad Credit

Rent is in and with the rental market reaching its best sales in the market today you may ask yourself how you could get into the trend when you have bad credit. Those who want to rent lots and properties realize the competition of occupying a certain area is very strong therefore they do all they can to convince the owner to choose them as occupants.

Agreeing with a date on when you should pay off the whole bill with your landlord can be quite tricky. Some people who really want to occupy the property would tend to agree on a 6 month pay or they would offer more than the price that the landlord is asking for.

So, how do you compete with these kinds of lenders when you have a credit that is not so good?

First, you have to be aware of your credit score info. If you keep on assuming that you have a very good credit score now only to find out that you are wrong and your liabilities are getting so high it is starting to break your life apart then that would be difficult to get back on your feet. Finding out too late is never good so always be conscious of your financials. In contrast, if you believe that your credit score is not as good then it is advisable to get a hard copy of your financial report and look at the actual statement.

Numbers are constantly changing do not just guess your credit score. You can get a free copy of your credit report at www.annualcreditreport.com and remember: credit ratings that range from 700 and above are good.

Next, always state the truth. If you are trying to get a property do not lie to your landlord about your credit score. If your landlord will be conducting a credit check tell them that they may find your score quite mediocre do not let them find out by themselves. For these kinds of information would make or break your deal.

Does Bad Credit Get in the Way of Your Love?

Settling bad credit will help a customer in saving a lot of money and also this will help in reducing the amount of interest rates for loans.Not only that it will also be your ticket to better car insurance premiums, better chances in being accepted for loans and being the most qualified man for a job opening.

Being financially troubled can be bad for your relationship. Your credit score could be inflicting a huge blow on your love life, so before you start planning for the future, it is best to first know each other’s financial status right now.

First things first, you have to have the idea of what your credit report contains. The criteria that your credit report shows are 35% is your payment history, 30% contains the amount you owed, 15% is the length of your credit history, 10% contains your new credit and the final 10% are the types of credit you have applied and qualified for.

So how do you help each other in rebuilding your credit status? You and your partner are not only partners in love but partners in financial matters as well. If you want your relationship to last then you have to take your credit scores seriously so that it will not interfere with your love life.

Credit scores are just numbers and do not clearly define everything about a person, however you should ask yourself these following questions: what does bad credit say to your employers about you? Why do you have so many outstanding bills or why was your car repossessed? Are you and your partner taking the necessary steps to rebuild your credit? If you do not start now then, when and if you will not help each other then who do you expect to look after one another?