FICO score changes could hurt Americans already facing debt issues

• Consumers with high scores already will likely receive higher scores than under previous FICO versions. Meanwhile, people with low scores who continue to miss payments or accumulate debt will experience larger score declines.
• Fair Issac Corp., the creator of FICO scores, said the alterations will produce a larger gap between consumers with good and bad credit risks.

The big picture: Up until now, FICO and other credit-reporting companies embraced changes that helped increase scores, such as removing certain information from credit reports.

• The about-face reflects U.S. lenders losing confidence in the U.S. economy.
• Though the U.S. is experiencing its longest period of economic expansion and unemployment has fallen to a 50-year low, consumer debt is soaring.

Go deeper:

• Mapping credit inequality in the U.S.
• Americans are getting smarter about credit cards
• Delinquencies spike with record-high credit card interest rates