Score 10 and Score 10 T will more heavily weigh personal loans because some consumers consolidate their credit card debt into a single loan, only to continue ringing up balances on their plastic. As it turns out, lenders are wary of that sort of thing.
The “T” version also marks the use of so-called “trended data” for the first time. In plain terms, that means the FICO model will look back at your borrowing habits for the past two years to see which direction you’re heading in.
With older versions, your score is just a snapshot of your credit usage as it looks today.
About 40 million Americans will end up with scores that are at least 20 points lower. A roughly equal number will see their score increase by that amount.
So the gap between good and bad scores is about to get wider. Schulz says someone like you, who’s gradually chipping away at your balances, will most likely end up faring better with Score 10 T.
While it’s understandable that people focus on these new scores, it’s worth bearing in mind that the basic DNA of these different FICO versions won’t change this summer. The same basic habits that mattered with older versions are still paramount.
To best prepare, keep your monthly payments on credit cards on time and continue to pay down the debt. Tier One Credit provides free credit scores analysis and audits to assist you best understand the new changes. It is free of charge and you may BOOK IT HERE!
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