As many of you know, I spent three years working at Fair, Isaac, home of the FICO credit score. Fortunately, I still have some good sources that work there. Here’s the latest news on some changes that are coming our way in terms of how your score is calculated.
If you have balances on your credit cards, make sure your balances are low. Specifically, see if you can keep your balances to below 30% of the credit limit on each card. Up until recently, having a balance on your card of 50% or lower of the credit limit was not going to ding your score, now the new ratio is 30% or lower.