More Credit Score Calculations are a Changin'
In mid-March, FICO announced changes to how it would calculate credit scores in the near future. Last month, Equifax, TransUnion, and Experian all announced an reevaluation of their credit score systems as well. Now, VantageScore Solutions has now announced changes of its own that will be implemented this Fall.
What does this all mean? Well, for the most part, credit scores for most individuals will increase. Also, the entire history of a person's credit will seem to matter more than real-time fluctuations in spend and number of accounts open. While this is nominally good news, I'm sure banks and lenders will be quick to adjust what they consider to be a good score.