FICO score changes
By Bensen32
@Bensen32 (28658)
United States
January 24, 2020 9:24am CST
I was reading about FICO changing the way credit reporting is going to be happening and they say it will be good for half the people and not good for the other half.
Seems they are going to be scoring heavier on the last 24 months than over all credit. So if in the last 2 years you have done better it is likely that your score will go up but if not well you can expect your score to go down.
They say that paying your balances down on credit card will weigh heavier in the good for you and that one time spikes in credit usage will not affect you so negatively as it has in the past.
They also said that personal loans will weigh in more now than in the past. So those that took out personal loans to maybe pay down credit cards will not do well for your score.
They will be able to see your growing debt more now then in the past where they just went with the current balance. So if you have a one time purchase that will not be as bad as a steadily increasing of your debt, assuming you are paying down that spike over time.
I guess this is going to be a good thing for my since most of my debt issues came about 4-5 years ago and I have been cleaning up my debt over the last 2 years. The article did not mention when this would be happening and when we might see a change in the credit score.
5 people like this
6 responses
@JohnRoberts (109841)
• Los Angeles, California
24 Jan 20
That is my method also. I never owe. I was raised if you can't pay in full, then you can't afford it exceptions being home where a mortgage can be advantageous and perhaps auto though I have paid in full for a car.
2 people like this
@DianneN (254949)
• United States
24 Jan 20
@JohnRoberts Yes, same here. We had a mortgage on our house, but bought our condo with cash and all of our cars. That was my father’s teaching.
1 person likes this
@snowy22315 (208801)
• United States
24 Jan 20
My credit score has been really positve lately so I hope it doesn't go down.
1 person likes this
@amitkokiladitya (171988)
• Agra, India
24 Jan 20
That is a big relief for sure.
1 person likes this
@amitkokiladitya (171988)
• Agra, India
24 Jan 20
@Bensen32 i agree. Managing bills is sometimes tough for me as well
1 person likes this
@Bensen32 (28658)
• United States
24 Jan 20
@amitkokiladitya Yep, just got to make it a priority and make sure you are not spending more than you can afford to spend.
1 person likes this
@porwest (112802)
• United States
16 Feb 20
I do not put much stock into credit scores because I believe debt is bad and cash is king. Do I USE a credit card? Yes. But only to get the cash rewards. Do I have an auto loan and can my score affect my interest rate? Yes. But I always pay off auto loans long before they mature. I just don't rely very much on credit and so whatever my score is means little to me.
And by the way when I DO buy vehicles on a loan I put down very hefty down payments. When we bought our Edge I put down $10,000 and when we bought my F-150 I put down $14,000.
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