More lenders are adopting FICO Score 10T, which incorporates trended credit data to provide a more nuanced view of borrower behavior over time compared to traditional snapshot scoring.
Borrowers who consistently pay down balances see score improvements, while those carrying or growing balances despite making minimum payments may see scores decline under the new model.
Consumers should focus on reducing balances rather than just making minimum payments, as the trended data methodology rewards consistent debt reduction behavior.
