Home | Newsletter | Advertise
loading...

New Credit Score Company Ignores One-Time Mistakes

  • May 7, 2013

by Shilpi Paul

New Credit Score Company Ignores One-Time Mistakes: Figure 1

Like UrbanTurf publisher Will Smith, many people see their credit scores plummet not because of chronic late-bill-paying, but due to one-time mistakes, like a misfiled medical bill or a lone charge on an overlooked credit card bill.

Frustratingly, these one-time events can have consequences that can impact your home purchase bottom line, as lower credit scores can lead to higher interest rates and a larger mandatory down payment.

However, one credit score generator has tweaked their formula to place less emphasis on these isolated mistakes. VantageScore Solutions is now ignoring collection actions as long as they are paid up, reported The New York Times. The company found that these sorts of activities were less indicative of a possible default on a loan when compared to unpaid collections.

While VantageScore Solution is likely a welcome alternative to many potential buyers (as opposed to the big three credit agencies), one large question remains: Will lenders honor the credit score it produces for potential borrowers?

See other articles related to: vantagescore solution, mortgages, credit score

This article originally published at https://dc.urbanturf.com/articles/blog/a_new_credit_company_ignores_one-time_mistakes/7030

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse