CoreScore, a new credit scoring system to be released in March, will provide a deep look inside credit history, possibly to the detriment of American credit scores.
Unpaid child support, late taxes, bankruptcies, apartment evictions and unpaid payday loans that are not factored into current credit histories will now be reflected by an individual's credit score, AGBeat reports.
For many Americans, this nosedive into previously off-the-grid financial patterns could mean disaster for their credit scores.
“We can say that for some borrowers it could have a very positive impact, for some it could make no difference in their current ability to qualify for a loan and for others, potentially lower their scores,” Tim Grace, senior vice president of CoreLogic, CoreScore's developer, said, according to AGBeat.
Grace said that the new scoring system not only provides a more comprehensive view of an individual's credit history for lenders, but it also allows consumers to examine bad credit behaviors.
“By seeing the additional data lenders can now use to make credit decisions, consumers themselves can gain a more clear understanding of their own credit behavior and, as a result, this could help them identify steps they can take towards building a more positive credit profile,” Grace said, AGBeat reports.