( Columbus , Ohio ) – As traditional Groundhog Day events begin to unfold, Ohio Treasurer Richard Cordray wants Ohioans to know that the time is also right to lift your head up, take a peek around, and make an annual check of your credit report … because like the seasons, rules governing credit scores are about to change. The Fair Isaac Corporation (FICO) will begin using a new scoring model this spring, which will change the way your personal credit score is calculated. Some of the expected results include:

• being an “authorized user” on an account belonging to someone with good credit won't help your score like it did before;
• applying for new credit accounts may not hurt your score as much as before;
• it will be more important to have a record of using different kinds of accounts, such as credit cards and a mortgage or car loan;
• people with one delinquent account won't be penalized as much as those with multiple delinquencies;
• being near your credit limit on several accounts may hurt your score more.

“Ohioans today are facing many challenges when it comes to their personal finances. There's less money in their wallets because of decreased wages and increased expenses,” said Ohio Treasurer Richard Cordray. “On top of that, the array of financial services available to them is getting harder to navigate. As evidenced by FICO's expected adaptations, the rules are always changing. This makes the vital tasks of checking your credit report and working to improve your credit score, even more important this year. Ohioans can improve their own financial security if they remember, at this time every year, to get those jobs done.”

Although scores may change, some things will still be the same for both consumers and lenders. For example, scores will still range from 300 to 850. Higher numbers mean the consumer will be more attractive to banks, and it will be easier to get loans and achieve cheaper interest rates.

The new model, developed by the Fair Isaac Corporation (FICO), is hailed to be a better predictor of which individuals will be good or bad credit risks… especially for those with troubled or short credit histories, credit seekers, or those who have “piggybacked” on others' good credit.

For more information on managing your personal finances, visit www.yourmoneynowonline.org .