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Written by Dana Neal
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Monday, 13 August 2007 |
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Why a second edition? There are many reasons, including the December 2003 passage of the Fair and Accurate Credit Transactions Act (FACTA), which amends the Fair Credit Reporting Act (FCRA). In addition, identity theft continues to rise, and there are some new strategies for dealing with it; the Bankruptcy Abuse Prevention and Consumer Protection Act (commonly referred to as the Bankruptcy Reform Bill of 2005) was passed into law on April 14, 2005 (taking effect on October 17, 2005), making bankruptcy far less appealing; and my knowledge of credit restoration tactics and strategies has grown significantly in the two years since the first edition of BestCredit was published.
All these things are good for the consumer and collectively improve the chances for do-it-yourself credit restoration. And yet one of the most dramatic changes has to do with a decision by Fair Isaac and Company (FICO) to release detailed information about its credit scoring model. This is no small thing, since 75 percent of mortgage lenders use the FICO credit score to assess risk, more than 90 percent of credit card issuers use it in their lending decisions, and 70 percent of all lenders use it for all lending decisions.1 |
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