According to FICO, about 40 million people could see their credit scores rise 20 points or more with the new system. Here's what this could mean for retirees.
Fair Isaac, FICO, +1.41% the giant credit score company, recently announced the biggest change since 2014 in how it determines its FICO credit scores. This new FICO 10 system — expected to go into effect by year’s end — could affect your retirement in big ways, possibly for the worse and possibly for the better.Having good credit is especially important in retirement.
But lenders weren’t thrilled with this development. Some argued the credit score increases weren’t deserved and could lead some people to get loans and credit cards they wouldn’t be able to pay on time.According to FICO, a credit card issuer might be able to lower its number of defaults by up to 10% under the new scoring model, though. One reason: FICO 10 will put more weight on a borrower’s rising debt levels.
That said, many of the general rules you’ve learned about earning a good credit score still apply under FICO 10. For example, it will still help to pay your bills on time, keep credit cards open and review your credit reports for errors often. Make paying off credit cards a bigger priority. FICO 10T will look back at how you’ve managed your credit cards over the last 24 months. If you have a history of paying off card balances every month, this good habit should work in your favor.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Selena Gomez Is Officially Launching Her Own Makeup Line, Rare Beauty'We are not meant to look like everybody else, we’re meant to look like ourselves.'
Les mer »
Atomico raises one of Europe's biggest VC funds of $820 million - Business InsiderKlarna and Spotify backer Atomico just raised one of Europe's biggest ever VC funds of $820 million
Les mer »
My Fiancé Won’t Do What I Like in Bed Because He “Respects Me Too Much”Dear How to Do It: Why do men decline a certain sex act because they “respect me too much”?
Les mer »
You’re Getting Married Again. Should You Combine Finances, Too?Keeping separate accounts makes it easier for some later-life couples to pay for their own children's big-ticket expenses
Les mer »