8 on your side: FICO credit score

Local News

LAS VEGAS (KLAS)– Reports have shown an unexpected boom in FICO credit scores lately, but before embarking on that next shopping spree or applying for a loan, just know that spike can be misleading.

Dr. Ann Kaplan Mulholland started a multi-million dollar company called iFinance 25 years ago. It specializes in loans for medical, dental, and home improvements bills. There is a lot that goes into determining whether her company will loan someone money.

“You should not get fooled by these high credit scores,” Mulholland said. “The amount of understanding we have to have of that borrower is astronomical, there are 62 variables making that one credit decision.”

Lenders are looking at bank account history and stability. If a person moves too often or changes their phone number, that’s a red flag.

According to Experian credit review, Americans hit a record high score- throughout the pandemic, of 716.

But Mulholland says the higher scores are misleading because they’re attributed to folks spending less money due to lockdown.

“People are not shopping, not borrowing, people are moving home with parents,” Mullholland said.

Experts recommend not canceling a line of credit simply because the credit card isn’t being used.

“Now what you need to do is utilize that credit, use that credit card. Buy things with it, but pay it off, just before the deadline debt, it will show you know how to use credit and you pay it off.” Mullholland said.

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