What Some Recent Changes to the FICO Score Mean for You!
But Only If You Know How To Take Advantage Of The Changes
Recently Fair Isaac Corp, the company behind the FICO Credit Score, decided to redefine what it will include in calculating your score. The new Score will be called the FICO 9 and it can drastically change your credit score for the better – if you’re careful and understand how it works.
An important article in the Wall Street Journal notes that “Fair Isaac Corp. said Thursday that it will stop including in its FICO credit-score calculations any record of a consumer failing to pay a bill if the bill has been paid or settled with a collection agency. The San Jose, Calif., company also will give less weight to unpaid medical bills that are with a collection agency.”
This means a couple things potentially positive things for you!
This means that more people (possibly you) will qualify for more loans with lower interest rates and a better credit score than you ever had before. This means if you are someone that has either settled a claim with a collection agency or you have unpaid medical bills your FICO Score won’t take as much of a hit allowing you to get better loans with lower interest rates.
This is all great!
The first is your new ability to get more credit!
Its great that many personal FICO scores will go up this fall but getting more credit isn’t always the best thing. Remember being able to promptly pay off your obligations is key to keeping that high credit score! And having a better credit score means that you might be able to buy a home, a car, or something you’ve been saving for or planning for.
Always get the amount of credit that you can handle financially. This ensures that you won’t run into other problems that could damage your credit score again.
FICO and other credit rating agencies roll out new scoring methods every few years. It is important to stay up to date on how your credit score will change with these new scores.
Even with this new scoring system Credit Card Debt is on the rise!
But, if you’re interested in buying a car, getting a loan, buying a home then you need to understand how to improve and to protect your credit rating
and (when possible) to lower your Credit Card Debt…Find out more about how to do it without paying a credit repair business from the Credit Repair Intelligence Guide.
Be sure to read the Wall Street Journal Article and watch the video here: Wall Street Journal Article on the FICO Credit Score . And, remember to stay current with new credit regulations and scoring systems. Click here to learn how to boost your score and to get better credit…on your own.