Credit Scores Matter – Could FICO Changes Impact Your Score?
Before purchasing a home, you’ll need to know how your credit score stands. Whether your score is good or bad – there are ways to improve your score. After all, your credit score will greatly affect what type of loan you’re given.
Recently, Fair Isaac Corp., creator of FICO scores, has updated their policy in scoring consumers. Eventually, they’ll start scoring consumers with rising debt levels and those who fall behind on loan payments more harshly – it will also flag consumers who sign up for personal loans (a category of unsecured debt that has risen).
What will these changes do?
Consumers with higher FICO scores (680 or higher) who continue to manage their debts and loans well might receive higher score than under previous FICO versions.
Consumers with lower FICO scores (600 and lower) who continue to miss payments will experience bigger score deficits.