Came across this article discussing upcoming changes to how the VantageScore credit score is calculated.
https://thepointsguy.com/2017/04/changes-credit-score-calculations/One thing that is concerning is that a large amount of available credit (even if not used) will negatively impact the score. This is the opposite of how VantageScore and FICO are currently designed, where more available credit typically will mean a lower utilization ratio and, thus, a higher score. This seems strange to me since after the change higher credit limits will presumably push your VantageScore down and your FICO score up.
It's my understanding that mortgage lenders typically use FICO scores, so maybe this isn't that bad. But, if the new VantageScore model proves to be popular, I can see other scoring models go the same route.
It's not clear how heavily each factor will be weighted in the new VantageScore model, so I'm thinking it's not worth closing accounts or reducing credit lines at this point.
