SAN JOSE, Calif.—Americans who are struggling to pay off their debt could see lower FICO credit scores in their future, especially if they miss payments, a new report indicates.
The FICO 10 model will start incorporating consumers’ debt levels into their scoring model.
FICO estimates that about 110 million consumers will see a change of less than 20 points to their score under the new credit score model, reported CNBC.
“Overall, roughly 80 million consumers will see a change in score of 20 or more points in either direction, upward or downward, FICO says. Those who fall behind on their loan payments are more likely see the drop in their score,” explained CNBC.