FICO Scoring Changes - Some are Good

The way your credit score is calculated is changing, and some of the changes could be to your benefit.

Fair Isaac Co,. the creator of the FICO score, has devised a new system that most CRAs will be using by spring. Under the new system, you will not be penalized for the occasional late payment as much as you have been in the past. The realization is that everyone sometimes misses a payment and the focus will be more on who is likely to default or not on a loan or a credit account.

Applications for new credit won't have the same impact either. Under the present system, having too many new applications for credit which cause an inquiry on your credit report have been marked against you. These will lose some of their importance and cast much less of a cloud under the new system.

Because credit scores are becoming increasingly important when someone wants to open a line of credit, take out a mortgage or loan or simply apply for a credit card, the new changes will improve scores for those with good payment histories and no delinquencies.
The new system will, however, further penalize those will recurring missed payments or overdue accounts.