Buzz
Your credit score isn't just a single number. Different agencies calculate various scores based on different factors. Equifax is one such agency, and they're incorporating a new element into their calculations: Homeowners' Association (HOA) fees.
We previously shared that FICO was set to introduce a new score that factors in your bill payments. This concept is based on the same principle: paying bills on time, including HOA fees, generally demonstrates financial responsibility, which is essentially what a credit score measures. Sperlonga, a data aggregator, will supply the necessary data. Equifax's Senior Vice President mentioned in a press release that:
Equifax is dedicated to offering consumers more ways to build their credit histories. By introducing new data sources beyond the traditional credit file information, they aim to provide a deeper understanding of a consumer's financial behavior and expand access to credit.
In essence, if you pay your HOA fees on time, it could boost your credit score (at least your Equifax score). Conversely, late payments may hurt it. For further details on this update, check out the full press release via the link below.
Image by Ishmael Orendain.
