Many people are trying to recover from negative, or lack of credit history, from events like Bankruptcy, foreclosure, and divorce.

Almost everything in the credit industry, that is, qualifying for home loans and car loans, is geared towards people who “have” lots of credit. That means if you want to get credit, you need to have a credit history. Now, there’s a new way to get credit, even if you don’t have much credit history. A new scoring system, called VantageScore, allows you to get a credit score without having had much credit. Read that as “if you pay for things with cash, you can now get a good credit score”. The standard FICO scoring system didn’t give you credit for cash payments, or less than 6 months of payments on credit cards or car loans.

This is great for new college graduates, immigrants, or recently divorced people who haven’t built up credit on their own. VantageScore has been around since 2006, and is still not accepted by FannieMae and Freddie Mac, but it is a way to get a credit score that can help with some lenders. It also allows people who pay for things with cash, or haven’t been in the “credit system” a chance to get credit in the future.

Here is one article that explains what vantagescore is all about:
https://www.creditkarma.com/article/vantageScore

This new credit scoring system could help you if you are now paying for many more things with cash after a negative credit event like bankruptcy or foreclosure.

Call for more information on credit history, and how you can build it up after bankruptcy, job loss, divorce, or foreclosure.

Daniel J. Winter
BankruptcyLawChicago.com
Offices in Chicago, Gurnee, Oak Lawn, and Skokie, Illinois
312-789-9999
djw@DWinterLaw.com