Exciting News Regarding Your Credit Score

As you know, your credit score has a dramatic effect on your life in a number of ways. It impacts your ability to acquire such things as loans, credit cards … even a home mortgage.

That’s why we’re so excited to tell you about something new that’s just on the horizon … something that will improve the credit scores of millions of Americans. The best part? You don’t have to do anything different, and you don’t have to pay any new bills to make it happen (source).

You see, the Fair Isaac Corp, or FICO, the largest credit score software provider, is changing the way they calculate their scores.

FICO scores are the ones most credit lenders use to determine the credit risk of a potential borrower … in other words, the “educated prediction” of whether you will pay your bills on time.

FICO scores generally range anywhere between 300 and 800. The bigger the number, the less of a risk you are in the eyes of lenders. Someone with a higher number will typically pay a lower interest rate than someone who has a smaller number … and sometimes, the person with the smaller number may not get a loan at all; hence, the importance of the score increase.

These new calculations will slant in the favor of the consumer, which will make credit scores rise … which, in turn, will improve the odds for hordes of borrowers to get loans from borrowers.

What has changed? First, the FICO scores will no longer include information about bills that have been paid off or settled with collection agencies. Additionally, unpaid medical bills with a collection agency will count less against an individual’s score.

For many years, there has been a public outcry to re-work the criteria upon which a FICO score is tabulated. They have listened, and we Americans will be the beneficiaries. Of course, each person has his or her own individual situation, but many of you will see an uptick in your score in the near future.