Remember the term "Fico 08".
A new credit scoring model is due to be released that changes how your credit score is viewed.
One change will make your "available credit line" even more important. That is very important considering credit card companies are trimming the credit lines of many consumers today.
For example, let's say your credit card line is $10,000 and you have a $4,000 balance. You are using 40% of your available line of credit.
What if the credit card company lowered your credit line to $5,000? Now your four thousand credit card debt equals 80% of your available credit. That could ding your score big time.
The new formula will ignore collection debts under $100, stuff caused by library fines or parking tickets. Silly stuff that really should not effect your score.
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