To combat fraudulent manipulation of credit-risk scores, Fair Isaac Corp. plans to end the practice of giving borrowers additional points for being an authorized user on another person's credit card account. Some companies that promise to boost consumers' FICO scores offer to make prospective borrowers authorized users on an established credit card account in good standing. Borrowers who pay for this service don't intend to use the credit cards to purchase goods and services. Instead, they are paying for the account's unblemished credit history, which can boost their FICO score and save them thousands of dollars on loans they might not otherwise qualify for. Some critics have said the ease of manipulating FICO scores has made them less useful in predicting a borrower's ability to repay a loan, and that heavy reliance on credit scores contributed to the current rise in delinquencies and foreclosures on subprime mortgage loans. Last month, Fair Isaac announced it would introduce new pro...
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