When Experian, TransUnion and Equifax rolled out VantageScore in March, 2006, their credit scoring calculation system, industry insiders knew that eventually, changes were coming to the credit score evaluation model.
Now those changes are right around the corner - and some are already here.
VantageScore doesn't have the heft or pedigree of the standard FICO credit score model, but it's coming on fast. In 2016, it handled more than 8 billion credit applications, and that figure will grow in 2017.
Consequently, the changes the three big credit agencies are making translates into big news, and potentially better credit scores, for millions of Americans.
Via the recently announced VantageScore 4.0, here are the credit scoring calculation changes Experian, TransUnion and Equifax are proposing:
"Trending data" is a priority - The VantageScore model will reward consumers who regularly pay down debt, but don't take on additional debt. Consumers who take in more debt, even if they're making the minimum payments to curb personal debt, will likely see their scores go down.
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