Changes in our credit score will begin to affect thousands of people. The new version, FICO 10T, will begin having a greater impact on consumers credit scores harming their scores harshly to those falling behind on payments. Those with a score of 680 or higher will continue to raise their score as long as they are managing their loans. For those with a score of 600 or lower will have bigger decrease on their score. The change is being caused when FICO and credit-reporting companies made changes to consumers information to help raise their score. The rise of FICO scores have helped create changes and improve the economy.
The reason for selecting this article is that a FICO score is one of the important things needed when applying for credit or a loan. Helping me save thousands of dollars on interest and fees from lenders. This change will be helping my score rise to an even higher score.
This relates business by affecting the borrowing industry companies needing to make adjustments to the new changes in order to offer consumers a better experience. The change also affects the consumers helping them handle their responsibilities better or continue struggling through the consequence.
Published: January 23, 2020
Link: https://www.wsj.com/articles/fico-changes-could-lower-your-credit-score-11579780800
This is interesting because it will have a huge effect on millions of people who are in debt and not paying their payments on time. Also, this is gonna have an effect on lenders and the amount of people who seek loans in the future.
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