My Blog, Your Money

The widely used FICO score just got a little more transparent with the disclosure of “damage points,” negative point values assigned to undesirable credit actions.  What was most interesting to me is the fact that damage points for a particular action vary depending on the credit score with higher credit scores suffering greater declines.  Take a look at the table below:

The formula FICO uses to determine credit scores has long been a mystery so, hopefully, this little peek into its methods helps the public make smarter credit actions.