FICO (NYSE: FICO) has released the FICO Score Mortgage Simulator as a new analytic tool for mortgage professionals.
According to the Bozeman, Montana-headquartered company, the new tool simulates the potential impacts to a consumer’s FICO Score with various simulated changes to their credit report data, such as reducing credit card balances or deleting a collection account. With this data, mortgage brokers and lenders can help potential borrowers gauge how the changes could affect their FICO Scores and show them how different credit decisions could open up more loan options and favorable interest rates.
The company added that the tool can run credit event scenarios from an applicant’s credit report data, such as paying off a car loan, and determine the potential impact to that individual’s actual FICO Score.
“FICO is continuously working on innovative product offerings that can responsibly expand credit access to more people,” said Geoff Smith, vice president and general manager of consumer scores at FICO. “Even a few additional points in a potential borrower’s FICO Score can have a material impact on the mortgage loan terms offered. Ultimately, the FICO Score Mortgage Simulator will prove to be a powerful tool that can enable more people to achieve the dream of homeownership.”
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Hey, if I have a debt card and utilize it for $1200 and pay the bill like I do…l need that amount some where. Me? I have to have the money to pay the$1200 so why not use that in my score.
I paid off 2 high balance high interest rate credit cards and my credit score went down 38 points. What’s up with that?
Crazy isn’t it! That happens though. Good news is it will start going up again!