Written by David Harpster, Rising Point Solutions.
Eventually, FICO 8 will be implemented. It is designed to help the mortgage industry, and here are some of the features that will help you, and one that might not.

  • Little Slip-Ups Hurt Less.

    Debts less than $100 will NOT have as large a negative impact on a consumer’s score.

  • Looking at the Big Picture.

    FICO 08 will take a more comprehensive look at a consumer’s credit history. This way, one negative aspect of a person’s credit history will not necessarily destroy their credit rating.

  • Restrictions on Piggybacking.

    Piggybacking is when a credit card holder with good credit let’s another person, perhaps with lousy or no credit, be an authorized user of the card. The good credit of the card holder would then have a positive impact on the other user’s credit. In order to reduce fraud associated with piggybacking, FICO 08 restricts piggybacking to only the card holder’s family.

  • Less Available Credit and Closing Accounts will Hurt More

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    Before FICO 08, if a consumer had a history of using most of his or her available credit, it had a negative impact on their score; now that impact will be even larger. Also, having too few open accounts, a number of inactive accounts or closing accounts will have a more significant negative impact.

  • Varied Lines of Credit will Help

    Having varied lines of credit—such as a mortgage, a car loan, or school loans in addition to credit cards—will have a positive impact on a credit score.

  • Even though, Fair Isaac Corp. is rolling out its new-and-improved FICO score, it’s likely to take a while before consumers see how they stack up under the new system.
  • It could be months or even years before the score is widely available to consumers.