Credit scoring company FICO is starting to make some changes to how they view consumers with rising debt and those missing payments; consumers with higher scores will start to see bigger bumps as they keep up on payments; consumers with lower scores will be knocked even lower as they continue to miss payments and use debt to fund their everyday lives; this is a big shift for a company that made changes to help boost scores in recent years by removing certain civil judgements; “There are some lenders that see there are problems on the horizon in terms of consumer performance or uncertainty about how long this recovery is going to go,” said David Shellenberger, Vice President of Scores and Predictive Analytics at FICO, to the Wall Street Journal. “We definitely are finding pockets of greater risk.”; there has been a thinking amongst some lenders that current credit scores do not accurately reflect the right risk and these changes could help to address those concerns. Wall Street Journal
