Credit score

8 on your side: FICO credit score

LAS VEGAS (KLAS)– Reports have shown an unexpected boom in FICO credit scores lately, but before you embark on that next shopping spree or apply for a loan, just be aware that this spike can be misleading.

Dr. Ann Kaplan Mulholland started a multi-million dollar business called iFinance 25 years ago. It specializes in loans for medical, dental and home improvement bills. There are a lot of things to consider when determining if your business will lend someone money.

“You shouldn’t be fooled by these high credit scores,” Mulholland said. “The degree of understanding we need to have of this borrower is astronomical, there are 62 variables that drive this credit decision.”

Lenders review the history and stability of bank accounts. If someone moves too often or changes their phone number, that’s a red flag.

According to Experian’s credit study, Americans hit an all-time high throughout the pandemic of 716.

But Mulholland says the higher scores are misleading because they are awarded to people spending less money due to the lockdown.

“People don’t buy, don’t borrow, people move with their parents,” Mullholland said.

Experts recommend against canceling a line of credit just because the credit card isn’t being used.

“Now what you have to do is use this credit, use this credit card. Buy things with it, but pay it back, just before the debt is due, it will show that you know how to use credit and pay it back,” said Mulholland.