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New Credit Score Formula Will Help Good Borrowers

News Flash: Your Credit Score May Soon Get a Boost

Fair Isaac, the company that calculates consumer credit ratings for lenders, is rolling out a new formula that will do a more accurate job at sorting out "good-risk" borrowers from "bad-risk" ones. If your score is around 680 to 690, the new formula could push your score up by as much as 25 points and your score would go from fair to good standing. This means that you would qualify for better interest rates. This will take a few months to go into full effect, but these are the highlights of Fair Isaac's new system.

  • If you have a credit history of 10 years or more, one big mistake from a long time ago won't hurt your score as much as it used to.
  • Multiple credit inquiries in a short period of time won't be as important to your overall score, but the 45-day window rule still applies.
  • Your score should increase if you have a good credit history and have proved you can manage different types of credit. On the other hand, you could lose points if your balances are close to the maximum on your lines of credit.

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princessjaslew princessjaslew 7 years
so what happens if i am maxed out on one of 6 credit cards (but the others either have a very very low or zero balance). will it affect my score?
JennaV JennaV 7 years
772 is a fantabulous score!
JennaV JennaV 7 years
772 is a fantabulous score!
wynter wynter 7 years
MissPriss - I'd leave it alone. That's a great score. As for your age, we got our mortgage at 20 and 22 and had no problems so I'm not sure how much age is a factor. Good luck!
hotstuff hotstuff 7 years
DearMiss, you score will definitely go down if you close your cards! Don't do it!!! Your score is excellent as it is don't screw it up.
sparklemeetspop sparklemeetspop 7 years
I wouldn't close them. Or at least, keep the oldest one. It shows the length of your credit history. A 772 is a good score. It's also good to know what kind of cards you have. The store rewards credit cards aren't great. Just maintain a low balance on all your cards and you should be good.
DearMissPriss DearMissPriss 7 years
My FICO score is 772. According to my credit report from my WaMu card, the thing that has hurt it is having so many open cards. I was considering closing all the ones I don't use, but I'v read that I should keep the ones I've had the longest....do you have any advice Savvy? I will be trying to get a condo in NYC in the next few years and I know it's not easy to get a mortgage approval at my age.
Lovely_1 Lovely_1 7 years
I think mine is pretty darn good right now :)
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