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NEW YORK (AP) - Fair Isaac Corp. said Tuesday the next version of its widely used FICO score will no longer consider certain types of credit card accounts, closing a loophole that allowed strangers to coattail on a cardholder's good credit.
The new FICO score formula won't include authorized user accounts — users on credit cards who are not responsible for paying the balances but are approved to make purchases with the cards. Often, authorized users are family members of a cardholder, such as college students on their parents' cards or spouses who have little or no credit of their own.
These types of accounts can improve a credit score if the primary cardholder kept low balances and paid the balance on time over a long period.
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