What You Need to Know about Credit Scores for 2017

January 29th, 2018 | Author:

[W]hen it comes to credit scores, it often seems like the more things change, the more they seem to stay the same. While changes are made in the scoring system, what is included and how it impacts your credit rating, the end result is that people with bad credit struggle to get ahead. However, recent changes have made life a little easier for those who are working to improve their credit.

Improved Credit Scores

Within the last couple of years, changes have been made for what is considered in your credit report and your credit score. Paid collections are often no longer calculated in and medical bills don’t have as much value as they once did.

With the changes made in the scoring, more people qualify for loans and other credit. It has helped some consumers be able to bounce back from some unfortunate situations.

More Lenders on Board

Lenders don’t follow the latest scoring software updates as soon as they roll out. It can take years for everyone to adopt the latest model. By that time, another new model has been rolled out which only a few lenders will use.

The good news for 2017 is that more lenders will be using the latest FICO scoring model. This means you have a greater chance of getting approved for a loan. However, it’s not a guarantee. The problem is that you don’t know which lenders use which model and whether it will result in an approval or not until after a credit check is done.

One thing that never changes is the fact that good credit is still the key to many of your financial goals and dreams. Work on it by making your payments on time and having manageable debt.

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First Lessons to Teach Kids about Credit

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3 Budgeting Apps to Help You Stay on Target

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