New credit scores are coming; will they help or hurt you?

Thursday, Feb 6, 20
change to credit score

The credit scoring giant FICO recently announced that they are planning on releasing their newest score models, FICO10 and 10T Suite, later this year.

The FICO 10 score model will continue to have the same score ranges and use the same 5 major factors in determining a credit score as previous models.  It is reported that consumers with recent late payments, high credit utilization (the amount owed on revolving debts compared to the limits) and possibly personal (unsecured) loans will likely see a negative impact to their credit scores.  Conversely, consumers with no late payments, low credit usage and no personal loans likely will see an increase to their credit scores.

The difference between the FICO 10 and 10T models is that 10T will take into consideration trending data.  Trending data takes into consideration your actual payments vs. the minimum required payments as well as balances.   Up to this point, FICO has never used trending data in their scoring models.  So, is your unsecured debt level trending up or down (don’t factor in student loan, mortgage or auto debt)?  Do you pay off your credit cards each month or do you only pay the minimum or a partial balance payment?  Is your total unsecured debt growing or is it in good shape?  Consumers that pay off their unsecured debts in full each month and refrain from opening new unsecured loans should expect trending data to help their score.  Conversely, consumers with high credit utilization and/or the presence of new unsecured loans should expect trending data to hurt their scores.

If you have a lot of unsecured debt, you would be best served to work out a budget and a plan to work on reducing your unsecured debt level.  Paying this type of debt down, or off, should help you with your FICO 10 and 10T as well as save you money on interest charges.  Keep in mind the word “trend”.  Even if you can only pay your unsecured debt down slowly, you will still be trending lower, which is good.

In summary, pay your bills on time on time and keep your unsecured debts to a minimum and you should do just fine with your credit score.

Consumers need to understand that many scoring models are commercially available to lenders.  Lenders choose which model works best to measure their risk in lending.  It is VERY common for consumers to have different scores with each scoring model.

If your credit needs some help, take action. There are a lot of resources available on steps to improve your credit. You can get free information from the FTC or contact a professional company like for help. By taking action to improve your credit, you may qualify for the home of your dreams or a new auto while paying less in interest charges.

Call us at 412-564-5370 with any questions / comments or schedule a free program review.  Like us on Facebook to receive future consumer credit tips.


About the Author

Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at and founder of where he works as an Expert Credit Witness in both Federal and State Court. With working in the credit and mortgage fields since 1991, he’s dedicated to sharing his knowledge to educate consumers.

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