Changes have been made to how credit scores are being calculated.  The Fair Issacs Corporation - creator of the FICO score has a new scoring model used to determine credit scores.  For most people in Cincinnati, it is anticipated that scores will raise slightly.

FICO scores are used to determine who banks will lend to and at what rate.  It helps predict a borrowers risk of default. Most people have scores around 690, with 850 as the highest possible.

The new formula is more forgiving of the minor slip-ups that most people experience. Debts of less than $100 will not have a large negative impact, nor will it destroy your entire credit rating.

Using  most of your available credit will have an even larger negative impact on your scores.  Additionally, having too few open accounts, many inactive accounts or closing accounts will have an even more significant negative impact.  However, you can gain a positive effect on your score by having varied lines of credit, including a mortgage, car loan, school loans and credit cards.

Consumers are encouraged to request a free credit report once every 12 months at www.annualcreditreport.com.