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 (650-680 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 sky-high 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 on-time rent and utility payments count toward your score in a positive way.