Measuring a good risk - key factors affecting credit scoring

[greenreaper]

I recently read over the August 2007 Report to the Congress on Credit Scoring and Its Effects on the Availability and Affordability of Credit. It's an interesting document - well, interesting if you're me, anyway

Comments

[sonious]

Read an article recently that these rules might be changing a bit as credit card companies get a little more worried over their wellbeing. It said that credit score companies are starting to use your actual purchases to determine if you are about to go into default.

An example they gave is if you re-tread your tires as opposed to getting brand new ones it seems to indicate you're having trouble staying afloat, or shopping at the Salvation Army, might be rumors though, these articles were from 2009. I didn't start using Credit cards until this year and my credit score was already ~750, hasn't moved really.

[greenreaper]

Yep, this is definitely a direction they're looking to go to. If nothing else, it gives them a reason to sell new market-specific products, providing an edge over the competition.

Of course, for a long time that would have showed me eating at McDonalds. Perhaps that just showed that I was cheap. :-)