New rules will cause some credit scores to risemollygavin
The formula behind how your credit score is calculated is being re-written. The new method will be implemented later this year by VantageScore (a company created by the credit bureaus Experian, TransUnion and Equifax). “Using what’s known as trended data is the biggest change. The phrase means credit scores will take into account the trajectory of a borrower’s debts on a month-to-month basis. So a person who is paying down debt is now likely to be scored better than a person who is making minimum monthly payments but has been slowly accumulating credit card debt.” Those with high scores may see them lowered by having too much available credit while those with low scores may get a boost from the removal of civil judgments, medical debts and tax liens Read the full story from USA Today here.