Giving Credit Where Credit is Due

FICO just announced a new scoring system that could change your credit score. The majority of people (110 million people, to be more exact) will only see a 20 point difference, if that. About 80 million will see a much more significant change in their scores. Bullet points below for easier explanation.

• Your credit score will most likely drop if you: 
  • Have a score of under 600
  • Have a high amount of credit card debt
  • Recently missed payments
• Your credit score will probably go up if you: 
  • Have a score above 680
  • Don't carry high balances 
  • Don't take on personal loans
  • Always make on-time payments

While our economy is experiencing record-breaking growth, consumer debt is still at an all-time high and lenders no longer want to take on unnecessary risks. This change allows them to make more informed decisions aka be pickier about who they lend their $$$ to. 

Moral of the story is this: Minimize your debt and always pay on time to increase your chances of qualifying for a credit card, home loan, and/or a decent date! ​