Most of the use of the new FICO 08 scores are being used by credit card companies and auto dealers. Currently, no mortgage lenders are using the new system. They are in the testing phase to see whether to incorporate it yet or not.

Changes were made available last month at all of the 3 major credit bureaus: Equifax, Experian, and TransUnion. The new system aims to focus less on minor infractions and concentrate more on larger trends in your spending habits.

-Small missed payments and amounts in collection of less than $100 will no longer negatively affect your credit scores.

-Nor will a more typical delinquency as long as it happened more than 2 years ago and assuming your credit is otherwise in good order.

-A deceptive practice known as “piggybacking” is also a target of the new scoring system. Piggybacking is when a person becomes an authorized user of a credit card of someone, who has much better credit. Previously, associating yourself on paper with someone with good credit would result in your credit scores being raised. The new system will seek to isolate the individual for his or her actual habits.

Bob Kearns, Maryland licensed loan officer