Your Credit Score Might Change. Here's Why.

The formula that calculates FICO credit scores will change later this year

In the year so far, the U.S. economy and job market have seen massive shocks due to the impact of COVID-19. Millions of Americans have lost their jobs or have seen their paycheck reduced. Though the federal government has provided some stimulus money to help individuals, many people have had to rely on loans and credit cards to cover their expenses. Unfortunately, this type of financial behavior could soon have a negative impact on those peoples’ credit scores. Americans might see their credit score change sometime this year due to a new formula from The Fair Issac Corporation – the company that issues the widely used three-digit FICO score. The main takeaway is that consumers who use their credit responsibly could see their scores rise, while people who rely heavily on credit and debt for their finances may see their scores fall.