After a long wait, CoreLogic has put its massive database of consumer data to work, announcing the CoreScore, a new type of credit file that supplements existing scoring of credit agencies like Experian, TransUnion, and Equifax which becomes available this week to all types of lenders.
With their partnership with FICO, CoreLogic will fill in the credit holes that traditional scores ignore. The supplemental score will highlight data like evictions, applications for payday loans, child support judgments, property tax liens, the status of homeowner’s association dues, whether or not you are underwater on your house or own other properties that credit agencies miss, and are debating whether or not to include utility bills or cellphone bill payment histories.
The CoreScore is still being formulated and the actual score number will be created in March for mortgage lenders but could extend to other types of credit in the future. The score could seriously hurt some consumers who have learned to take care of the types of bills tracked by the big three agencies while allowing the others to fall to the side, especially in a tanked economy. But the company notes this score could help people with limited credit files and add positive information like timely rent payments.
Over than 200 million people have traditional credit scores through the main three credit bureaus and the CoreScore will rate 100 million. According to the New York Times, CoreLogic has informed Fannie Mae and Freddie Mac of the CoreScore, but neither have committed to using the scores. Because of their existing massive footprint in the lending industry, it is expected that the CoreScore will see a high rate of adoption.