Monday, February 09, 2009
How They're Recalculating Your FICO Score
This might be a good time to update your credit reports. Fair Isaac, the developer of FICO scores, has made the biggest change to its mathematical credit score model since it was introduced in 1989. Scores will still be on a 300- to 850-point scale. But the company estimates that 40% to 50% of borrowers’ scores could go up or down by more than 20 points. Depending on your situation, you may get some good news -- or not.
The chart above is not up to date but will give you an idea of the key components. Some interesting consumer reactions can be found here.