Your Credit Score is About to Get Personal

FICO scores have been around since the 1950's and became a major
factor in  determining a mortgage borrower's creditworthiness around 1995, when
Freddie Mac  and Fannie Mae began recommending their use in the lending process. 

The  score, which ranges from 300 to 850, factors in how long borrowers have had  credit, how they are using it and repaying it, and if they have any judgements  or delinquencies logged  against them. However, consumers are soon going to  start sharing more personal information when applying for a mortgage. 

In an attempt to develop a more well-rounded picture of a person's finances beyond  credit, tools are being developed to help lenders dig a little  dipper.

Fair Isaac Corp, the company behind the widely used scoring  formula, and data provider CoreLogic announced last year a collaboration that will result in a separate score that will become available to mortgage lenders and that will incorporate  information about payday loans, evictions and child support payments. In the future, information on the status of utility, rent, and  cellphone payments may also be included. Since last year, the credit reporting  agencies have began to provide information about consumer's income
and rental  payment history as an option in their reports.
While this new information  may open the door to homeownership for many "thin-file" consumers,
it may also  make a borderline borrower look worse on paper.