How to maximize your credit score

A new credit scoring model rolling out



Last week, the Fair Isaac Corp. announced a new credit scoring model rolling out this summer that could change over 110 million consumers’ credit scores. But the changes to FICO’s model won’t alter your score significantly if your credit habits already score well with the company.

FICO is a popular credit scoring model used by companies to assess a consumer’s credit worthiness. A score, valued from 300 to 850 in the FICO model, helps determine what interest rates, car and home loans, credit cards and other financial products and services a consumer is offered.

The newest version, FICO 10, will weigh each consumer’s total debt load and payment habits more heavily when calculating their credit score. FICO is primarily interested in monitoring your credit card balances — not necessarily your mortgage or student loan debt — to see if they are consistently increasing or you are routinely seeking new credit.

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Source: CNBC Make It

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