What will 2020 look like for your personal finances? Some things are under your control, others are not. As laws, markets and financial goals change, so will your finances. Here are a few headlines to read on 2020 credit news and more.
4 Headlines on 2020 Credit News
The main focus of this Weekly Round-Up is the new FICO scoring model. Fordbers reports, ” FICO’s new scoring model (known as the 10 T) would assign more weight to how a consumer’s debt levels and on-time payment record have changed over the past two years.”
Read through these articles to learn more about the upcoming changes.
- Why your credit score matters so much by CNBC
- Don’t pay more than you have to: four common credit card fees that you can avoid by USA Today
- Dueling Indicators: Stock Market Edition by NPR
- Don’t Panic Over New FICO Credit Scores—Do This Instead by Forbes
Lessons on Good Credit Habits
While you may be approved for a large mortgage, a shiny new credit card or an auto loan to cover a new vehicle, it does not mean you can actually afford it. Creditors are not looking out for your best interest! They want to make money off the interest and late payment fees you will incur. That’s why you need to be proactive and informed.
Know your budget and what you can handle. Your loans and credit must align with the bigger picture. If you want to donate more money or save more for retirement, you must take this into consideration. The creditors will not.
- Never pay late.
- Always pay the full amount each month.
- Don’t spend more than you can afford.
- Research any credit or charge account before applying.
- Know your finances inside and out.
- Have your financial goals written down and specific.
- Work with your partner or spouse to manage your finances.
- Keep current on changes to credit reports, credit scores and any new laws that might come about.