All articles tagged with #credit scores
Mortgage rates have surged to a three-year high, with the 30-year fixed rate reaching 7.44% on October 2, 2026. While headline averages mask significant variation, experts advise buyers to optimize credit scores, down payments, and lender selection to secure rates below 7%. Alternative options like adjustable-rate mortgages and rate buydowns are gaining traction as affordability tightens.
Fannie Mae and Freddie Mac now allow lenders to use VantageScore 4.0 for all mortgages, expanding a limited pilot. This change may help homebuyers with thin credit histories by including rent and utility payments. The Federal Housing Finance Agency is also considering reducing the number of credit reports required for loan approvals.
FICO's announcement to provide its credit scores directly to mortgage industry players led to a 15% surge in its stock, while shares of credit bureaus like Equifax dropped significantly, reflecting a shift towards more direct and transparent credit scoring processes in the mortgage sector.
Gen Z's credit scores have dropped more than any other generation due to student loan debt and economic challenges, but improving credit habits like timely payments and low utilization can help rebuild scores.
US consumer credit scores have declined at the fastest rate since the 2008 financial crisis, with Gen Z borrowers experiencing the largest drops due to higher utilization and delinquency rates, especially related to student loans, while the median FICO score continues to rise.
Credit scores in the US are declining at the fastest rate since 2009, driven by high living costs, student debt, and economic disparities, with younger Americans especially affected by increased delinquencies and job market challenges.
Millions of low-income Americans face a dual threat as recent legal and policy changes could lead to increased medical debt appearing on credit reports and higher healthcare costs due to Medicaid and ACA cuts, potentially damaging their credit scores and financial stability.
The stock of FICO, the company behind the widely used credit score, plummeted over 17% after the Federal Housing Finance Agency announced that lenders can now use VantageScore, a competitor, to assess creditworthiness for government-backed mortgages, potentially increasing competition and reducing costs in the mortgage industry.
FICO is launching a new credit scoring model that will incorporate Buy Now, Pay Later loans, potentially affecting the credit scores of millions of Americans by providing a more accurate assessment of their creditworthiness, especially for younger and less established borrowers. However, adoption may be slow due to inconsistent data sharing among BNPL providers and credit bureaus, and concerns remain about the impact on vulnerable communities.
Nearly 2 million federal student loan borrowers could face wage garnishment this summer due to missed payments after pandemic relief ended, with defaults rising and credit scores dropping, prompting warnings from the Education Department and highlighting the ongoing debt crisis.
FICO will now include buy-now-pay-later (BNPL) data in its credit scores with the launch of two new scoring models, reflecting the growing use of BNPL services and aiming to provide lenders with a more comprehensive view of consumers' repayment behaviors. While this move is seen as a modernization of credit scoring, there are concerns about the potential impact on borrowers' credit profiles due to late payments and 'phantom debt.'
FICO announced it will now include buy now, pay later (BNPL) data in its credit scores, reflecting the growing impact of BNPL services like Afterpay and Klarna on consumers' financial lives and creditworthiness, enabling lenders to better assess credit risk.
A study by the Federal Reserve Bank of New York and Georgetown University reveals that individuals who develop Alzheimer's or similar dementias often experience significant financial difficulties, such as falling behind on mortgage and credit card payments, years before their diagnosis. This financial decline mirrors the cognitive deterioration associated with the disease.
A study found that wiping out $169 million in medical debt for 83,401 people did not significantly improve their mental health or credit scores on average. The debt relief had no impact on financial distress or mental health, and only slightly increased credit scores. The results were unexpected and mirrored a previous study on cash transfers, suggesting that insufficient relief may raise feelings of distress. The study raises questions about the effectiveness of medical debt relief and its impact on recipients' well-being.
Some consumers are regretting using buy now, pay later (BNPL) services due to overspending and financial strain, with one individual accumulating $6,000 in BNPL loans over two years. Financial experts warn of risky spending on BNPL platforms, as users tend to consume extra and incur more fees and interest. The Consumer Financial Protection Bureau found that BNPL users had higher credit card utilization rates and lower credit scores than non-BNPL borrowers, with Black and Hispanic consumers being more likely to borrow on BNPL. While BNPL services offer payment flexibility, some lawmakers and consumers are calling for more scrutiny and caution when using these services.