Key Updates This Year  

Fannie Mae and Freddie Mac have started accepting VantageScore 4.0 for mortgage approvals alongside traditional FICO scores. This new model considers rent, utility, and telecom payments, helping people with limited credit history.

FICO Score 10T is also on track, with historical data expected this summer. It uses “trended data” — reviewing two years of credit behavior instead of a single snapshot — to better reward consistent financial habits.

What This Means for Borrowers  

  • No more strict 620 minimum FICO score for many conventional loans.

  • Positive BNPL (Buy Now, Pay Later) payments will boost scores.

  • Paid medical debts and small collections are increasingly removed from reports.

These shifts aim to expand access to credit while keeping risk in check, especially in a stable but cautious banking environment.

Quick Tips for Consumers  

  • Pay all bills on time — still the biggest factor.

  • Keep credit card usage under 30%.

  • Check your free credit reports regularly.

  • Report rent/utilities if possible.

Experts call this the biggest credit scoring overhaul in years. More changes are coming as banks fully adopt these modern tools. Stay informed!