“Instead of relying on just a snapshot of your financial behavior, the new score, called FICO Score 10, will be able to peer into your financial habits for the past 24 months and determine – based on that history – if you’re a risky borrower.”
“The new score now utilizes so-called trended data in a person’s credit report that shows a person’s credit performance over the last two years. It also provides more granular data, such as the amount you paid toward your credit card.”
A long time ago, I bought $5K worth of iBonds with a credit card. Later, I was denied a car loan because they said I was a “risky borrower”. Under the new scoring system, I guess I’m still a “risky borrower”.
If I understand the new system correctly, I think you should be seen as less risky under the new system because it’ll look at two years of debt-handling habits.
So if they see that you sometimes have large purchases (say paying taxes on credit card or putting large expenses on credit card to satisfy spend requirements) but that you paid them up immediately in the past, any new larger than usual balances should look less like a red flag and more like your regular spending patterns.
I have nothing to add to the topic as I don’t do MS, regularlly apply for CCs, or have need a loan in the near future. I logged just to comment on your subject.
“New FICO changes may lower — or boost— your credit score”
The three choices are stay the same, lower, or boost.
I see the subject isn’t yours but Yahoo’s. BTW, the original link doesn’t work; it takes you to Yahoo’s main page. Don’t know why. This takes you to the story:
