Recent updates to the FICO scoring model have changed the way credit scores are calculated – and you may be affected. As of July 2009, the three main credit bureaus (Experian^®, TransUnion^® and Equifax^®) began using an updated scoring model, FICO 08. “It was designed to provide lenders with a more precise system and is expected to improve the accuracy of lending decisions,” says Danny McNeill, Financial Center Manager with Fifth Third Bank.

Below, McNeill outlines the new scoring model’s key differences:

Today, it’s more important than ever to maintain a good credit score. “In the past, lenders were more lenient,” says Mike Lewallen, Financial Center Manager with Fifth Third Bank. “Now, many have tightened their lending guidelines and re-assessed risk levels, making it crucial to have the best credit score possible.”

If your score isn’t as high as you’d like it to be, consider the following tips:

Having a sound credit score can build bridges from where you are to where you want to be. “Your credit score can impact everything from loan approvals, getting utilities and your credibility with potential employers,” says Randie Sue Luersen, Personal Banker with Fifth Third Bank. “Understand that having credit is a privilege, not a right. When you learn about the factors that compose your score, you can help ensure you don’t do anything to accidentally damage it.”