The FICO system, whose credit scores lenders use to determine whether you’re credit-worthy and how favorable to set the terms, is set for a makeover. An article in today’s WSJ reveals more of the changes in store than previously disclosed, here’s how they’ll affect your credit score:

+ situations where scores will rise, – situations where scores will fall

+ Mess up every so often
– Consumers who consistently mess up
+ Won’t get dinged as hard when you apply for credit from multiple sources
+ Having a mix of credit types, like having a credit card, mortgage, and auto loan at the same time
– Spending near the limit of your total available credit
+ If you’re 90 days late on payments on one account and your other credit accounts are in good standing
– 90 days late and you have other delinquent accounts
– Being an authorized user on someone else’s account with good credit will no longer help your score

Default Lines: The New Math Of Credit Scores [WSJ]

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