TUCSON, Ariz. (KOLD News 13) - Last week, we told you how FICO is rolling out new standards for credit scores. In response, we got some great questions about how and when this will impact you.
FICO, the most widely used credit score, is making some changes to help lenders better judge which consumers are the riskiest bets — and it could make it harder for millions to get loans.
More than 100 million Americans will see their score go up or down because of this. The changes are set to take effect sometime this summer. Those at greatest risk to drop are people who took out a personal loan to consolidate debt, then applied for more credit, or those who routinely max out their limit.
Brooke’s Bargains checked in with NerdWallet about this.
Their advice: Start with the things you can control.
- Always make at least the minimum payment on bills and keep credit card balances low.
- Think twice before closing an old credit card account. Doing that can lower your total credit limit.
- Don’t open any new credit card accounts
- If you’re already have a score around 680 or higher, chances are, your score will actually go up, not down.