Last week I mentioned that Fair Issac (the company that calculates consumer credit ratings for lenders) would be rolling out a new formula for calculating your credit score, and that some factors would be given different weights than they had with the old formula. According to CNN delinquencies (late payments) on credit cards are the highest they've been in three years, and a solid record of timely payments will continue to be an important factor in calculating your score. They also spoke with Craig Watts from Fair Issac who warns that if you're using 50 percent or more of your credit limit, your credit score will take a bigger hit than it already has when the new FICO scoring system is rolled out in May.
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Thanks Savvy!
1Thank You!
2My balance won't be 0 until December...Will this take a hit on my credit score after that from holding a balance previously? I'm not sure how the new formula works?
3I'm trying my best to pay off 2 cards before this takes effect.
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