When considering the credit scoring system in America, it is easy to perceive that one only gets punished for one’s misdeeds and shortcomings and never acknowledged for one’s efforts to be financially responsible. Well, according to an article on CNN Money, the powers that be at Fair Issac (the FICO folks) will soon be rewarding consumers who have exhibited good financial behavior with higher credit scores.

This new, more fair system of credit scoring has been in the works for several years and is designed to “better differentiate “good risk” borrowers from “bad risk” ones and give creditors a more accurate prediction of default. A consumer in good standing could see his or her score go up by as much as 25 points under the new formula.”

Speaking specifically, this means three important things for consumers

1.  Occasional mistakes will be forgiven over time
2.  Shopping around for a loan will hurt you less
3.  Having a few kinds of credit works in your favor

The details behind all three points are well worth reading but in short, this is a welcome and helpful change in light of our presently troubled economy.

Read the full post at CNNMoney.com.

Tags | bad risk, borrowers, consumers, credit report, Credit Score, credit scores, credit scoring system, creditor, creditors, fair issac, fico, financial behavior, good risk, money, shopping