Upcoming changes in the way FICO scores are calculated are designed to help more consumers qualify for better loan rates. However, the adjustments may not have much impact on credit union loan growth.
The new scores will give less weight to unpaid medical bills when assessing consumer creditworthiness. The San Jose, Calif., firm also said criteria will be revised so borrowers who have settled collection agency bills won't be unfairly penalized.
FICO said the new criteria will be implemented some time this fall.
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