RICHMOND, Va. (WWBT) - Your credit score determines a lot in life: it can affect buying a car, a house or even getting a student loan.
And now the way your credit score is calculated is changing.
Fair Isaac Corporation or the developer of FICO scores, will roll out something called “UltraFICO”. This new score works differently than the existing FICO score, which looks at how you’ve handled credit in the past.
With UltraFICO, consumers agree to give FICO access to their personal checking and savings information. Then, FICO combines that data with any existing credit data to arrive at a score.
The change means the more debt you carry, the more harshly you’ll be penalized for making a late payment.
FICO estimates about 110 million consumers will see a change to their score, most seeing less than a twenty point swing in either direction. This is still a pilot program, but it will be more widely available this spring.
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