Also something of a lagging indicator as you need to actually start missing payments before they fall. And not terribly significant if you were only seeing them shift a few points during the worst foreclosure crisis in US history.
Then there’s another question of their validity in an industry geared towards marketing and sales. Keep in mind that many of the companies with the worst foreclosure rates had AAA credit scores right up until bankruptcy.
Wouldn’t scores fall earlier than that as more people utilized their credit lines and their credit: debt ratio changed? I’m sure the impact is much less than missing payments, but I think that would be an important thing to monitor for trends
Wouldn’t scores fall earlier than that as more people utilized their credit lines and their credit: debt ratio changed?
Assuming lots of people are sitting on lines of credit they’re not using, I suppose. But unless you’re nearing your max your credit score actually goes up if you’re regularly making payments on outstanding debt.
Also something of a lagging indicator as you need to actually start missing payments before they fall. And not terribly significant if you were only seeing them shift a few points during the worst foreclosure crisis in US history.
Then there’s another question of their validity in an industry geared towards marketing and sales. Keep in mind that many of the companies with the worst foreclosure rates had AAA credit scores right up until bankruptcy.
Wouldn’t scores fall earlier than that as more people utilized their credit lines and their credit: debt ratio changed? I’m sure the impact is much less than missing payments, but I think that would be an important thing to monitor for trends
Assuming lots of people are sitting on lines of credit they’re not using, I suppose. But unless you’re nearing your max your credit score actually goes up if you’re regularly making payments on outstanding debt.