Most people rightfully worry about their credit score, but thanks to the Fair Isaac Corp. (FICO)–known for being the creator of the widely used FICO credit score–what exactly they are worrying about is changing.
For decades a person’s credit score was determined based on their payment history, and how much credit they had available to them.
That’s about to change. FICO has announced plans to roll out a new system in early 2019 that would factor in things like how people manage the cash in their checking account, savings, and money-market accounts, the Wall Street Journal is reporting.
The Wall Street Journal is hailing this as “among the biggest shifts for credit reporting and the FICO scoring system, the bedrock of most consumer-lending decisions in the U.S. since the 1990s.”
The new score will be referred to as the UltraFICO Score and is actually meant to boost the number of people who get approved for debt including credit cards. For people who have long account histories and several hundred dollars in said accounts are primed to see a boost to their score.
In other words, from a consumer perspective, there isn’t much to worry about.
Feature Image: The Money Manual