VantageScore recently announced that they’ll be releasing a new formula for determining your credit score that instead looks at trended data that tracks borrowing history over time rather than just looking at your report whenever it’s pulled.
If you’ve let debt pile up over time and gradually pay it off, you may have a lower score than those who pay off total debts each month. Those with growing debt who open many accounts at once may also be perceived as risky.
Ultimately, however, the experts advise not changing your patterns too much to accommodate this new trend. There are many different types of credit scores, and this is just a small one.
Image via Elite Personal Finance.