59- Credit Scoring is Changing – Are You Impacted?

In Chapter 3 of my book The FinancialVerse – A Common Sense Approach for Your Money, I discuss the reality that you need to know the financial gatekeepers that impact your journey through the universe of money. One of the most important groups of gatekeepers is the credit reporting agencies. These organizations track and monitor how you pay your bills, use credit and assess your ability to repay any obligations you incur. The major agencies do their work using the credit scoring system created by Fair Isaac Corporation – The FICO scoring system.

The Major Change

Last week, Fair Isaac announced the latest update of this system: FICO 10. FICO 10 scores will more accurately take consumer debt levels into consideration and more closely track personal loans. This revision is expected to change the credit scores of about 80 million people with about half seeing their scores increase and half seeing decreases of approximately 20 points.

Here are three posts that we came across that will help you better understand the expected changes:

• CNN Business - Changes are Coming to Your Credit Score

• Consumer Reports - What the Changes in FICO Credit Scoring Mean for You

• Lifehacker - What FICO 10 Means for Your Credit Scores

Timing for the Changes

The new scoring system will begin to be implemented beginning this summer. Please pay close attention to your credit scores as this change takes place.

****************************************************************************

The FinancialVerse works to help you identify life’s financial challenges and provide suggested resources that you can pursue to educate yourself. The content is focused on consumer education and does not promote any particular product, service or company.

If you value the content we provide, please follow us on Facebook and forward our free Moneysavers to your friends who share your interest in improving their knowledge about money. You can also

forward this post to your friends or ask others to subscribe to our free Moneysavers. Once you subscribe we will notify you each time a new post is added to the site. Also, if you have a question you want answered, please send it to us using the Contact Us tab on our website.

1. If you have purchased a copy of The FinancialVerse through Amazon, please leave us a review as it will help get our message out.

Thanks again for your interest in improving your financial knowledge.