New FICO changes could lower your credit score


Well let's go in deep here on your credit score which is likely to change this summer as a new scoring model is introduced Cape case Joe Michaels has more on what's changing and what it could mean for you the fair Isaac corporation is rolling out a new scoring system that aims to give lenders the ability to make more precise decisions right now they're actually taking snapshots of your credit this call I take it out I felt the once in a while in time now that they actually be able to stream it for twenty four months so they're looking at twenty four month consistency of the trends of how you pay back your credit card to how often you pay that back if you default I asked him early flaws founding CEO of empyrean wealth management in Roseville who's likely to benefit from fight goes new score ten suite I see the letters that's good for them because they'll be able to lessen the default rate however if you are consumer it's going to be a little more strange idea that has for suggesting you take a detailed look at your financial situation always get your annual credit report dot com you get that free every year to go through that with a fine tooth comb make sure that everything is correct on that report secondly make sure that you know your credit score is seven forty or higher that's really the marker at getting a really good interest rates on mortgages on loans on credit cards that kind of thing it's also important to watch your debt to credit ratio you why basically have thirty percent of what the get a thousand dollar limit you wanna have three hundred dollars or less on your credit card at all times or less obviously and came on time and pay them off so often sometimes I pay my credit card on the fifteenth the mountain Agha paid again on a thirty that really helps to boost your score one is that they wanted the activity they want to see that you're planning for your credit card but they also want to see the ability to pay it off and if you're paying that off on a more regular basis basically means you have more money your being more responsible but your credit by paying off that means you're more reliable again effect twenty four months usage trends that are gonna be able to track a lot more specifically than what they used to be able to adjust snapshot well not all lenders are likely to immediately switch to the new system much like not everyone immediately upgrade to the latest cell phone the bottom line it is the consumers who are already managing their credit well we'll probably see an increase in their scores while those with late payments are high credit usage you're likely to see a drop Joe Michaels news ninety three point one K. F. B.

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