Your FICO credit score just got a facelift. FICO ’08 is the new and supposedly improved version of your credit score that creditors and lenders will use to determine whether they’ll extend credit to you, how much, and the rates, terms and conditions.
According to the Consumerist, the credit score makeover may cause your score to rise or fall. If you’ve had a couple mishaps with bills, but aren’t a repeat offender, FICO’s giving you a break and as a result, your score may go up. If you screw up a lot — sorry, your credit score’s going to get hit even harder than before.
Doing some research on mortgages, resulting in several credit pulls? Now, your score won’t feel it as much. Also, if you have a mix of different credit types — credit cards, mortgages, student loans — FICO sees this as a good indicator that you’re responsible with credit (as long as you make your payments on time), so your score may get a boost.
So what’s with the change? FICO, or the Fair Isaac Corporation, says the new scoring model will do a better job of predicting who’s responsible with credit, and maybe more importantly (for creditors and lenders, at least), who’s not. Sounds like it might be time to check your credit. Keep in mind, the credit bureaus don’t offer a FICO score directly to consumers because they have their own scoring models. FICO is a completely separate beast and if you want to get the low-down on that score, you’ll have to purchase it directly through the MyFICO Web site or get it through your lender.
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FICO ’08 Changes the Face of Credit was originally featured on Quizzle Wire
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