(NBC) The way your credit score is calculated is changing.
The company behind the popular FICO credit score rolled out its newest credit scoring model Thursday. It will start incorporating consumers’ debt levels into their scores.
The scores are key to getting a loan for a car, a house, a credit card.
The change means the more debt you carry the more harshly you’ll be penalized for making a late payment.
FICO estimates about 110 million consumers will see a change to their score with most seeing less than a 20-point swing in either direction.
The new scoring model will also likely create a wider gap between those who are considered good credit risks and those who are not.
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