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 https://dc.urbanturf.com/articles/blog/a_new_credit_company_ignores_one-time_mistakes/7030.
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