MINNEAPOLIS — Although experts dispute over whether the practice is illegal, the Fair Isaac Corporation says the latest change to its credit scoring system will at least cut down upon and perhaps eliminate the practice of renting credit scores.
Renting credit scores, or "credit-boosting" is where someone with perhaps a low FICO score in the 500′s will pay someone with a good credit score to add them to one of their existing credit cards as an "authorized user" without actually giving them the card or card number.
As an "authorized user" of the credit card the new cardholder with the poor FICO score took on, under the old system, the good credit history of the good cardholder. This is the practice which Fair Isaac says its new system will end.
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