One of the most prominent names in credit and scoring and financing is FICO. The FICO credit score is used to determine whether or not someone receives the financing he or she wants or needs, and this credit score can also be used when others are making determinations about:
- Bank accounts (although it is possible to open some offshore accounts without a credit check).
- Jobs.
- Insurance.
- Rental agreements.
The FICO score is an important part of one’s overall finances — especially if one wishes to do some sort of financial transaction in the United States.
Changing how FICO is figured
The new FICO score will include finer distinctions on a number of factors. Different degrees of credit-worthiness will be addressed in a way that hasn’t been considered before. Under the old rules, a missed payment was a missed payment, and the credit score accordingly lowered. The new rules promise better subtlety in determining credit score: A first missed payment will not damage the credit score as much as a third or fourth missed payment. Piggybacking is another issue expected to be addressed by the new FICO score rules.
It remains to be seen whether offshore banking will really be impacted by the new FICO score rules. But if you have financial dealings in the United States, this is an important bit of news to pay attention to.
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