It's one number that can make or break your financial future, your credit score. Soon, changes are coming to how that score between 300 and 850 is calculated.
Creditors will now look at a borrowers debts on a month- to-month basis as opposed to just reviewing the current month. This will give banks and creditors an idea of borrowing behavior over time.
Another change headed to credit scores? Medical debts will no longer affect your credit score.
"Sometimes medical bills will show up on your credit report as you didn't pay them when really it just took a year for the insurance company to finally pay it," Scott Laughlin, Vice President of Consumer Credit Counseling Service of Buffalo, Inc., told 7 Eyewitness News.
The changes are set to begin July 1 and according to a report by the Wall Street Journal, as many as 700,000 consumers will see their credit scores improve by at least 40 points. The publication says another 11 million consumers will see their scores increase by 20 points or less.
So what can you do to improve your financial health? Laughlin recommends keeping a close eye on both the important numbers and actual report, and using that information to plan for your financial future.