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FICO changes mean 40 million Americans could soon see lower credit scores
Source: Washington Post
FICO changes mean 40 million Americans could soon see lower credit scores
Fair Isaac, which produces the credit score, is introducing a new model amid record levels of consumer debt
By Renae Merle
1/23/2020, 12:47:31 p.m.
About 40 million consumers who have fallen behind on their bills or have rising debt levels could see their credit scores fall significantly under changes being made to FICO.
Fair Isaac, which produces the widely used credit score, said the severity of the downward shift for those with the lowest credit scores, 600 or below, would depend on how recently the consumer had fallen behind and by how much.
About 40 million consumers who already have high credit scores, at least 680, could see it rise even further. “Consumers that have been managing their credit well … paying bills on time, keeping their balances in check are likely going to see a gain in score,” Dave Shellenberger, vice president of product management scores, said in a statement.
Overall about 110 million people will see their scores swing about 20 points in either direction, according to Fair Isaac. Companies could adopt the new scoring model as soon as this summer, the company said.
-snip-
Fair Isaac, which produces the credit score, is introducing a new model amid record levels of consumer debt
By Renae Merle
1/23/2020, 12:47:31 p.m.
About 40 million consumers who have fallen behind on their bills or have rising debt levels could see their credit scores fall significantly under changes being made to FICO.
Fair Isaac, which produces the widely used credit score, said the severity of the downward shift for those with the lowest credit scores, 600 or below, would depend on how recently the consumer had fallen behind and by how much.
About 40 million consumers who already have high credit scores, at least 680, could see it rise even further. “Consumers that have been managing their credit well … paying bills on time, keeping their balances in check are likely going to see a gain in score,” Dave Shellenberger, vice president of product management scores, said in a statement.
Overall about 110 million people will see their scores swing about 20 points in either direction, according to Fair Isaac. Companies could adopt the new scoring model as soon as this summer, the company said.
-snip-
Read more: https://www.washingtonpost.com/business/2020/01/23/fico-changes-mean-40-million-americans-could-soon-see-lower-credit-scores/
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