Changes Coming to Your Credit Score
This summer, the three-digit number that contributes to a lender’s decision to loan you money and the rate you will pay for the privilege will see new revisions that could cause an expected swing of 20 points or more. Fair Isaac Corp., the driving force behind the FICO score, announced that it has revamped its methodology with its new FICO 10, which has stricter monitoring of those who carry large amounts of debt in relation to available credit and use personal loans for debt consolidation. The new methodology may also ding individuals with limited credit histories (especially younger borrowers) and impose harsher scrutiny on missed loans payments. The impact is expected to be felt greatest among those with scores of 600 and lower. However, borrowers at the higher range of the score who carry little to no debt and consistently make on-time payments could actually see a bump. Also, The Wall Street Journal reports that many lenders and the three big credit reporting agencies are currently using older versions of FICO to calculate credit worthiness—among them FICO 8, which was released in 2009—due to the cost of upgrading to the new system. If the industry does adopt FICO 10, effects will be seen within the year. As always, carrying low amounts of debt, making on-time payments, and not taking on new lines of credit will continue to be the best way to a higher score.
Sources: The Wall Street Journal, Business Insider, fico.com
It’s Official: TNCs Begin (Legal) Operations in Vancouver
The picturesque British Columbia community that valiantly resisted the usual lobbying and strong-armed tactics of TNC giants Uber and Lyft to flood its city streets with app-requested drivers has finally given in. Less than 24 hours after the Passenger Transportation Board (PTB), an independent licensing tribunal established under the Passenger Transportation Act, announced that it approved Uber of Canada and Lyft of Canada to operate in the city, passengers took their first rides. The TNCs have been approved to operate in Region 1, which includes Lower Mainland and Whistler, according to the PTB. Although the rollout was swift, the Vancouver Sun reports that the TNCs have been in serious talks to re-start operations in the city for months now. Uber fled the city in 2012 after it was forced to follow the minimum trip charge that is imposed on chauffeured transportation. Lyft’s debut was a little less robust than its Goliath counterpart: For now, it will only operate in certain areas until it can increase its number of drivers on the platform. While Vancouver had frozen out the apps, its transit system—including buses and trains—saw a boost in ridership. The area has also increased its sustainable methods of transportation, including more walking and biking paths for commuters.
Sources: CBC, Vancouver Sun, Passenger Transportation Board (press release)
N.J. Becomes First State to Pass Severance Protections for Mass Layoffs
Democratic New Jersey Governor Phil Murphy recently signed into law new legislation that requires companies with 100 or more full-time employees to pay severance to workers should the company have an imminent mass layoff. The bill—S3170—was largely considered a response to the practice of private equity firms purchasing struggling companies and then turning them into bankrupt zombies, leading the mass termination of non-executive employees while often handing out lucrative bonuses to its executive team. The new law, which will go into effect this July, requires that the company offer severance pay equal to one week per year of service should it experience a layoff of 50 employees or more. In addition, the notification time that a company must provide to its employees will increase from 60 to 90 days.
Sources: NPR, nj.com
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