How to Navigate New Credit Score Tool for Mortgages

Updated

Lenders have a new tool at their fingertips for evaluating the credit worthiness of home loan applicants. It's called FICO 8, the eighth generation of Fair Issac Corp.'s formula that's used by most lending institutions to access credit risk. But the latest version has one twist: Its touted as being at least 15 percent more accurate in detecting risky mortgage borrowers. "[The FICO 8 Score] will have little impact on the credit worthy consumer," says

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