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!