When it comes to credit score, it is always a very personal and hot topic for consumers everywhere. The new FICO credit score has just been implemented and we have the lowdown for you!
Your credit score is made up from information in your credit reports and reflects the risks in loaning you money. FICO 9 is quite different from its predecessors in several ways.
The new FICO formula has 3 primary items that are treated differently:
1. Medical Collections – unpaid medical accounts are will be considered less indicative of credit risk than unpaid non-medical accounts
2. Paid Collections – paid collections will be treated differently than before on collection situations that have been paid off in full by the consumer.
3. Rent Payments – rental payment history may now be factored into the score when a landlord reports the payments to one (or all) of the credit bureaus.
If you would like to know what your FICO 9 score is, this can be purchased from FICO, any lender or even your credit card company. In order to get a good FICO 9 score, you should always pay your bills on time as late payments can decrease your score. Additionally, the later the payment, the worse the damage to your score.
Using credit facilities sparingly also helps your credit card improve, as does how recently you have applied for credit and how long you’ve had your current credit. You should, however, check your credit report as you can dispute any errors or obsolete information.
At the end of the day, in order to get the most out of FICO 9, you should always pay your bills on time and keep your credit balance as low as possible!