Friday, January 24, 2020

Your New Credit Score

If you're one of those people who constantly checks your credit score, you might notice a difference in it fairly soon. Fair Isaac Corp., the creator of the FICO score, announced that its new FICO 10 model is expected to cause scores to fluctuate roughly 20 points.

If you’ve been carrying credit card debt, you could see a drop in your credit score. The new credit scoring model will be calculated to incorporate consumers’ account balances for the previous 24-plus months, as opposed to just the most recent month.

FICO estimates that roughly 110 million consumers will see a change to their credit score once the new model is in effect later this summer. Approximately 40 million consumers will see a shift upward over 20 points and another 40 million will see a shift downward.

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