New Credit Score Base

New Credit Score Based on Rent, Utility PaymentsFair Isaac has launched the FICO Expansion Score to help prospective borrowers with minimal credit histories obtain loans and credit scores. The Expansion score gauges a borrower's creditworthiness using timely utilities and rent payments and clean checking accounts, among other factors. While car dealers and credit-card companies have already embraced the new scoring model, mortgage lenders are unlikely to do so unless Fannie Mae and Freddie Mac purchase the resulting loans.

Kiplinger's Personal Finance, Joan Goldwasser (03/07)