In recent years, the credit score system in the United States has undergone several important changes. In 2023, the release of FICO 10 introduced new rules that are impacting millions of American consumers. This new version of the credit scoring model places more emphasis on the past two years of credit history, penalizing more severely
those who have recently increased their debt or opened multiple credit accounts in a short period of time.

Another significant change is the inclusion of alternative information in credit score calculations. Credit bureaus like Experian and TransUnion are now starting to include data on utility payments, such as electricity, water, and even rent. This is a major step forward for millions of Americans who traditionally did not have access to credit or had a low score because these regular payments were not previously considered.

Additionally, there are ongoing legislative efforts to increase transparency in the credit scoring process. Many consumers feel that the rules are complex and opaque, making it difficult to understand how their financial actions directly affect their score. Congress is debating laws that would require credit bureaus to provide more detailed reports and clear explanations of how the score is calculated and how it can be improved.

These changes are welcomed by consumers who have historically faced difficulties obtaining loans or financing. The new rules have the potential to make the credit system more inclusive and fairer, especially for those who pay their bills responsibly but were not previously recognized for it.