Has anyone looked into this? It seems like a pretty massive change.
It looks like the new FICO 10 scores take your average balance over a 24-month period and generate your credit score based on that.
That could be bad news for people in the App-O-Rama crew that pay off all our credit cards right before applying for a mortgage, applying for credit card promotions, or trying to get new 0% balance transfers.
I think a lot of people are going to get a lot of surprises when they go to apply for credit.
It seems like some people strategically want to keep their credit cards paid off depending on their situation.
The new credit scoring model will be calculated to incorporate consumers’ account balances for the previous 24-plus months, which is bad news for anyone carrying balances month to month. These changes are expected to widen the gap between people with good credit (scores 670 to 739) and those with bad credit (scores below 580).