I am looking for some feedback on this. Many of the people I work with at the bank have been telling me how they have changed the way they calculate your FICO score and it no longer hurts you every single time you apply for credit. Although if you continually apply multiple times for the same type of credit it can lower your score now people who occasionaly like to shop around for a better interest rate will not be negatively affected. Has anyone else heard this as well?

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Scott McKay
Private Banker
IncomeandCredit.net

To me that sounds like its made getting credit that much easier even if you usually have problems with getting it. But wouldn't that make it far easier for people who are already in debt to dig themselves even further into a hole?

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www.applyforfinance.com

Hi Scott,

Yes, I have heard of this. I believe you are referring to the new FICO credit scoring model, dubbed FICO 08. With this new model, applying for new credit accounts my hurt less.

There was an excellent article posted on MSN Money on January 3, 2008, about this new FICO model. It is entitled "Build a Killer Credit Score in 2008" by Liz Pulliam Weston. It goes into detail about credit inquiries not being as detrimental. According to the article, this new model is more reflective of today's consumer who is a more active credit seeker & user. However, it does not define the amount of inquiries, and I would definitely continue to be cautious about applying for credit - only applying for credit when you really need it and after you have done your homework.

Because I am new to this forum and have not posted 15 messages, I cannot include the link to this article in this message. If you would like the link, feel free to email me, and I will send it to you.

I hope this helps!

Kathy Jo

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Kathy Jo Pollack
Certified Life Coach, Trainer, & Speaker
Focusing on Financial Independence
www.kathyjopollack.com