According to a recent article from Northwestern Mutual, your credit score is one of the most important numbers in your life, as it’s used to set the rates you get on loans. A good score can make a big difference for your money.
That’s why it’s worth taking notice that one of the most common credit scores — known as the FICO score — will be calculated differently starting this summer. Fair Isaac Corp., which produces the FICO score, estimates that about 110 million Americans will see a change of less than 20 points, and about 80 million people will see a change of 20 points or more.
HOW DOES THE FICO SCORE WORK?
FICO scores are used by most lenders when they make decisions about things like giving you a car loan, personal loan, a mortgage or even…