Changes could be coming to your credit score! FICO recently announced that it will be releasing a new version of the FICO score. The new scoring model will assess consumer debt levels more closely and track personal loans.
Additionally, the new model will take a historical view of payments and process new information such as account balances over the previous two years. These features aim to give lenders more insight into how consumers are managing their credit.
FICO estimates that around 80 million people will likely see a shift of 20 points or more, with half going up and half going down. Those who keep high balances on accounts or recently missed payments will likely see a decrease, while consumers who keep account balances low and make timely payments will likely see an increase.
These changes are expected to take effect in the summer of 2020. For more information on this new scoring model, click here.Tags: Credit