The way FICO scores are determined is changing, and though it isn’t drastic all things having to do with your finances should be carefully monitored, so make note.
It’s that three digit number assigned to consumers to gauge their ability to pay off a loan, and the rules are being tightened. When implemented this summer, Dave Schellenberger, FICO Vice President, says 40 million people will see their number go up and roughly the same amount will see their number go down.
If you’re carrying a lot of credit card debt relative to other types of debt and have gotten behind on a payment or two, expect a drop. If you pay things off, you could go up.
“If you don’t game the system or are aware of the system it could hurt your ability to get a loan at the best rate,” says consumer expert Jamie Court. “If you have too many credit checks – say you’re an active shopper and go to ten car dealers and they all run a credit check on you – that could hurt your score,” he tells KTRH news.
FICO estimates 110 million consumers won’t see a change in score.