Debt weighs heavily on those trying to rise from poverty, By Megan Woolhouse, November 12, 2014, Boston Globe: “Roberta Brown, a 37-year-old single mother, lives in a homeless shelter, desperately trying to find the job that will help her gain a new home and better life. She recently earned a certificate as medical assistant, hopeful it would lead to a job in the state’s burgeoning health care industry. But that has not been not enough to surmount what Brown believes are the greatest barriers to her employment: the $20,000 in credit card debt she ran up while out of work several years ago and her damaged credit report. Each time she applies at a hospital, she’s asked to sign an agreement allowing the employer to check her credit…”
Tag: Credit scores
Low-income Borrowers – California
In California, a new law helps low-income borrowers build credit, By Teddy Nykiel, August 22, 2014, Christian Science Monitor: “California broadened the reach of nonprofits that target low-income borrowers who lack the credit standing needed to obtain a traditional loan, enacting a law that lets the organizations lend as much as $2,500 interest free without a license. Clients of groups like the San Francisco-based Mission Asset Fund are often unbanked, underbanked or have low credit scores. Under the new law, payments must be reported to companies that create the rankings, such as Experian and Equifax. By repaying in full and on time, borrowers can create the track record they need to qualify for regular loans…”
Credit Score Changes
FICO changes may ease credit access, By Katherine Peralta, August 8, 2014, US News and World Report: “A new calculation of credit scores soon could make it easier for millions of Americans to qualify for car loans and credit cards. The new methodology also could provide easier access to home mortgages after tight post-recession lending standards shut millions of potential new homebuyers, particularly young Americans, out of the market. The Fair Isaac Corp., which issues credit scores used in 90 percent of U.S. consumer lending decisions, said this week that it will give less weight to unpaid medical bills…”