Why change scores now?
FICO is offering two new scores, FICO 10 and FICO 10 T, and both differ from the previous formula.
Some of the changes, like carrying a personal loan as well as credit-card debt, affects both new scores. But there are more substantial changes involving the FICO 10 T version.
For example, instead of looking at just a static month of your balances, FICO 10 T will look at the past two years or more, which will give lenders more insight into how you’re managing your credit over time. That should mean your scores will better reflect the trajectory of your behavior. (VantageScore, a lesser-known score provider that is a joint venture of the three big credit-reporting companies, has already incorporated this into its formula.) There are other changes, too. FICO 10 T will weigh recent missed payments more heavily and penalize those who use a high percentage of their overall available credit for long periods
In general order of importance, those are your payment history, the percentage of your credit used, the length of your credit history, your mix of loans and how many new accounts you’ve applied for.
That means a lot of the traditional advice still holds: Don’t make late payments, don’t apply for more credit than you need, and keep outstanding card balances to a minimum.