Reforms to FICO scoresAug. 9 saw the unveiling of FICO Score 9, the latest incarnation of the nation's most widely used credit scoring system. And the three key changes contained in this new version could boost the scores of large numbers of consumers:
- If the only major black mark on your credit report is a result of medical debt, its impact should be reduced. FICO reckons that, on average, those in that position could see their score rise by 25 points on its 300-850 scale.
- Debts that have been in collection and then fully paid should no longer count against consumers' scores.
- Those who have short or limited credit histories can expect "a more refined treatment," in FICO's words. This might see people in that position being approved for more credit at lower interest rates.