FICO has announced that as of 2019 it will be rolling out a new scoring system after focusing almost exclusively on a consumer’s payment history. FICO’s new scoring system will consider money management in ranking a borrower’s credit score.
Specifically, FICO scores will now look at how consumers manage checking, savings, and money-market accounts — and use that data to make determinations on a borrower’s creditworthiness. The new score is called the “UltraFICO” score.
Although the UltraFICO will be released at the start of 2019, the score will not be widely available. After a short pilot of the UltraFICO scoring system, FICO plans to offer the score to all lenders by the summer.
Factors the UltraFICO will take into account include: (1) an analysis of your average account balance; (2) a history of past overdrawn accounts; (3) an analysis of your deposits v. withdrawals; (4) the amount of time you have had an active checking account; and (5) whether you regularly pay your bills from your account.
There has been a long-standing myth that Bankruptcy can ruin your credit score. Studies, however, indicate Bankruptcy actually helps your credit score. A 2010 Federal Reserve Bank study showed the average credit score at filing was 538. By the time the bankruptcy case discharged, the petitioner’s credit score had risen nearly 80 points. Harvard conducted a study, focused on Chapter 13 bankruptcy cases, that concluded chapter 13 bankruptcy actually increases an individual’s credit score and the probability of becoming a homeowner.
The new scoring system can benefit people in Chapter 7 and Chapter 13 bankruptcy. Since Chapter 7 eliminates your debt, you will be able to start saving and show a positive cash flow on your account. While chapter 13 can assist consumers by establishing regular bill pay activity from their accounts.
You can learn more about the UltraFICO score at: https://www.fico.com/ultrafico/#why-its-important
Geraci Law is the only law firm in Chicago with offices in neighborhoods abandoned by major retailers and law firms. Geraci Law serves Chicago’s south side communities with first-class legal services from local offices in
Chatham at 8658 S. Cottage Grove,
Geraci Law Roseland at 115th and Halsted, and \
Geraci Law Washington Park in the Harold Washington Office Center at 51st and Wentworth.
Target is leaving their 126,000 square-foot store at 8650 South Cottage Grove Avenue in Chicago because its “not profitable”. While Target and other stores are leaving Cottage Grove and the surrounding South suburbs, Geraci Law is staying. The firm’s founder Peter Francis Geraci believes in serving local communities while most lawyers have fled to downtown and the suburbs.
Geraci Law has 26 city and suburban locations, with Chicagoland offices on 22nd St., 51st street, 63rd street, 87th street, 95th street, 115th street, 159th street, and 171st street, as well as North and Harlem, Cicero and Irving, and 234 N. Ashland.
Geraci Law is the ONLY firm with 26 offices in Chicago and the surrounding suburbs, nearly 20,000 5 star reviews, Client Corner, and Geraci Law is the ONLY firm with the mission to Change your life for the better. Remember, when you need to be debt free, 1-800-CALL-PFG.
Geraci Law is a debt relief agency helping you file for chapter 7 or 13 bankruptcy relief.
The newest Geraci Law office in Evergreen Park, Illinois, has a big addition. The twenty-foot tall sign-post carries an eight-foot by eight-foot monument sign with an LED display. The new LED display is two-feet by eight-feet and can display both video and images. The new sign will make it easier for Geraci Law clients to find the new office location since Geraci Law recently moved.
“THE NEW GERACI LAW OFFICE HAS 3 ATTORNEY OFFICES AND A LARGE WAITING ROOM AND RECEPTION AREA. THE OFFICE HAS A LARGER (FENCED IN) PARKING LOT WITH.”
The new Geraci Law Office Location in Evergreen Park IL replaces the old Geraci Law office at 3640 West 95th Street to a larger office at 3560 West 95th Street approximately a month ago. The new Geraci law office has 3 attorney offices and a large waiting room and reception area. The office has a larger (fenced in) parking lot with. You can access the parking lot by driving around to the back of the building. The office is located west of Kedzie on 95th street and across the street from pearl vision.
IRS said it has already received a number of fake tax returns that had accurate taxpayer names, addresses, Social Security numbers and even bank account information for the victims.
In an unusual twist, bogus refunds were directed to the real taxpayers’ bank accounts. A criminal, posing as a debt collector, then contacted the taxpayers saying the refunds had been sent in error and the victims should forward the money to the crook.
Because these fake returns contained all of the taxpayer’s correct information, down to the right number of dependents, the IRS believes the scam started in tax-preparation offices. The agency assumes that the data was compromised because some preparers were taken in by phishing scams that then loaded malicious software onto their computer systems, making all the taxpayer information that was kept by these preparers vulnerable to theft.
In a recent article, published by Nerd Wallet, “Debt settlement a bad alternative to bankruptcy” Liz Weston shares debt settlement horror stories. Some of the problems with debt settlement are caused when the debt settlement company doesn’t reveal the full effects of failing to pay a bill or when a debt is discharged without the benefits of Federal laws. For example, Liz Welton indicated consumers didn’t understand the below consequences of debt settlement:
- One woman didn’t realize she would face a tax bill on the forgiven debt.
- A man opted against bankruptcy in part because he erroneously thought he would lose personal possessions.
- Another woman was shocked at how far her credit scores tumbled and how much interest she was charged when she applied for a car loan.”
Liz also clears up a common misconception about bankruptcy versus debt settlement. Although debt settlement companies claim bankruptcy is harder on your credit score than settlement, the truth appears to be the opposite.
While a consumer can start rebuilding their credit months after the bankruptcy petition is filed, debt settlement can take years. When a consumer enters into a debt settlement agreement, they aren’t paying their creditors and often a consumers credit score drops into the 500’s. With delays in reaching a settlement and eliminating the debt, debt negotiation can keep your credit in the 500’s for years.
Make sure you research your options. Meeting with Peter Francis Geraci Law Bankruptcy and Injury attorney is free. We will layout all your options and work with you to help you get debt free.
Geraci Law founder, Peter Francis Geraci, recently settled a civil rights case v. Cook County over jail conditions. Mr. Geraci handled the matter pro bono on appointment by U.S. District Court Chief Judge Ruben Castillo. Members of the trial bar of the District Court receive rotating appointments to represent pro se litigants.
Jenner and Block also represented the same plaintiff in several other cases and contributed to obtaining a global settlement of the plaintiff’s claims for abusive conditions and medical treatment at the Cook County jail.
Geraci Law regularly contributes time and resources to representing indigent litigations. The firm contributes hundreds of unpaid hours a year in this regard.
Geraci, Arreola & Hernandez, L.L.C. became members of the exclusive ISBA Mutual Club on June 1, 2017. The ISBA Mutual Club provides quality legal service to low-income individuals who would otherwise not have access to certain types of legal aid. The Illinois Bar Foundation helps thousands of individuals each year and will distribute approximately $750,000 in funding. Geraci, Arreola and Hernandez’s contribution will support the Warren Lupel Lawyers Care Fund, which helps attorneys and their families.
Attorney Peter Francis Geraci is an advocate for providing legal assistance to individuals with low income. Peter Francis Geraci’s firm, Geraci Law L.L.C., files pro bono cases for individuals who demonstrate a need for assistance, but are struggling financially. In addition, Peter Francis Geraci is on a list of attorneys who accept pro bono cases in Illinois.
You can learn more about the Illinois Bar Foundation at their website, https://www.illinoisbarfoundation.org/.