Two of the three largest credit-reporting agencies plan to change their credit scoring systems this summer. Chalk it up to FICO ‘08, a software revision from Fair Isaac Corp., developer of the FICO credit score. “The scoring range of 300 to 850 won’t change,” explained Craig Watts, a spokesperson for Fair Isaac. “Nor have the principles for good score management.” With any credit scoring system, you can increase your score by paying all your bills on time, keeping credit card balances low and applying for new credit only when you need it.
But the new system changes the weight it puts on certain factors, including late payments, and removes the benefit of authorized user status. The system reportedly goes easier on consumers who make an occasional mistake, but comes down harder on those with multiple late payments or delinquencies.

What’s it mean to you? Expect to see a change in your Experian and TransUnion credit scores when those two agencies start using the new software. Your Equifax score, however, should stay the same because Equifax has no current plans to use the new scoring system.

Your scores from Experian and TransUnion will increase slightly if you are late on one debt but current on multiple other accounts. However, your score is likely to drop if you’ve been late on several accounts. The new scoring system ignores authorized user credit card accounts on the individual’s credit report. So if you’ve been benefiting from the good credit of a spouse or parent, expect your Experian and TransUnion scores to fall significantly.

If that’s the case, try to plan while you still have time. Take advantage of your current credit score to open a new credit card individually or as a joint owner. Your application is more likely to be approved before your score falls.

Start using that card as soon as you receive it. Just make sure you stay well under the credit limit and make at least the full minimum payment at least a week before the due date. It will help you build your credit score.

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