That could have consequences for a person who leans on credit cards during times of distress, like a job loss. “But that person is probably a bad credit risk, unfortunately,” said Chi Chi Wu, a staff attorney at the National Consumer Law Center. Most consumers, or 110 million people, will see modest swings, if they see any change at all, according to FICO. But about 40 million people who already have favorable scores are expected to gain about 20 points, while another 40 million with lower scores will probably see a drop. That’s because home loans guaranteed or backed by Fannie Mae and Freddie Mac, which include the vast majority of mortgages, are still required to use older versions of the FICO score.

Source: New York Times January 25, 2020 09:56 UTC