FICO Updates Credit Score Model Using Trended Data for Better Risk Assessment

Credit scores are critical tools for lenders to assess an individual's creditworthiness, with evolving models like FICO Score 10 T incorporating trended data over multiple years to improve accuracy and fairness in credit risk assessment. Maintaining a healthy credit score involves consistent financial behavior, including timely payments, managing credit utilization, and having a balanced mix of credit types, as emphasized by experts from India and Namibia. Despite a high credit score, applicants may still face rejections because lenders also consider additional factors such as past dealings and information provided in application forms, highlighting that credit scores are not the sole determinants of credit decisions. Consumers are encouraged to regularly review their credit reports to identify and dispute inaccuracies, which helps protect and potentially improve their credit profiles. Overall, credit education and awareness empower individuals to make better financial decisions and access credit more equitably and efficiently. These insights reflect a global perspective on credit scoring and financial health management.