Sometimes, managing finances can feel like a game—one whose rules aren’t always easy to figure out.
It can be doubly disturbing when those rules change unexpectedly. And according to a recent announcement by the Fair Isaac Corporation, the consumer reporting agency responsible for calculating FICO® scores, that’s exactly what’s about to happen.
Many consumers are familiar with their FICO Score, the three-digit credit rating used by many lenders to gauge a borrower’s creditworthiness. Even if they can’t name the exact number, most credit users likely know it exists.
But it’s less common to have a total understanding of how, exactly, that score is arrived at—and that’s before throwing in a formula change.
For most consumers, however, this FICO announcement is apt to be a total non-issue. And even for those whose scores are affected, there are tons of smart financial moves that can help mitigate the changes and potentially help raise overall creditworthiness.
Here are the deets about the 2020 FICO® Score changes.