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?
This article originally published at http://dc.urbanturf.com/articles/blog/a_new_credit_company_ignores_one-time_mistakes/7030
Most Popular... This Week • Last 30 Days • Ever
Following a bankruptcy auction, sale closed on the property last November.... read »
The new home also has an owner's suite that spreads out over 3,300 square feet.... read »
Over 8,000 apartments were absorbed in DC in 2021 for the first time.... read »
A neighbor of the priciest home to ever sell in the DC region appears to be taking in... read »
Howard University built a lot of momentum last year, putting pieces of its vast portf... read »
UrbanTurf is re-running its primer on property taxes which outlines a few things that... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The H Street Corridor once epitomized DC's development boom, but construction activit... read »
The upzoning would mandate additional Inclusionary Zoning units for developments alon... read »
The Shaw pipeline is starting the year off hot.... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
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!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro