How The New Credit Score System Might Help You

At some point within the next seven years, a new credit score system may be created to take the place of the existing FICO Score system that has existed for decades. While a good credit score (650680 or above) has unlocked the door for many to be able to own a house, a car, and obtain credit cards, for others it has been a door shut because of lack of financial literacy and the heavy weight of skyhigh interest payments and late fees. That may all change with the new public system, replacing the private system currently run by the three credit bureaus: Equifax, TransUnion, and Experian. A new public system may help reduce the burden of student loan debt, bankruptcy, bad dings on your credit report lasting seven years, and the ability to have you ontime rent and utility payments count toward your score in a positive way.