Your FICO score is about to get a makeover. As The Panelist reports, the Fair Isaac Company is working on new criteria for figuring the FICO score. This is something to pay attention to, since your credit score affects your mortgage financing -- from whether you get the home loan to the terms, including interest rate, that you are offered.
First of all, Fair Isaac is doing away with "piggyback" credit. No longer can college students build good credit by being an "authorized user" on a credit card. There are other examples of piggyback credit, all equally being done away with.
The other FICO score change is to do with how debt impacts your score. Your FICO score will take a bigger hit now due to your debt level, and so it will become more important to keep your debt level lower.
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