Future Changes to the Credit Score

Impact of the New Credit Score for Buyers

What New Credit Score Models Mean for Homebuyers in Palm Beach County

There are changes to the Credit Score Models coming over the next few months. The landscape for homebuyers will shift significantly. Fannie Mae and Freddie Mac will mandate the use of FICO Score 10T and VantageScore 4.0 by the end of the year. This change aims to provide a more comprehensive and inclusive assessment of creditworthiness, which is great news for potential homebuyers.

Understanding the New Credit Scores

FICO Score 10T and VantageScore 4.0 are designed to offer a more accurate reflection of a person's credit risk by incorporating additional data points. Traditional credit scores have primarily focused on credit card payments and loan histories. However, the new credit models take into account alternative credit data, such as:

  • On-time rent payments
  • Utility bills
  • Phone bills

For those who rely less on credit cards or loans and more on cash or alternative payment methods, this is a significant advantage​.

Key Benefits of the New Models

  1. Increased Inclusivity: The new scoring models aim to be more inclusive. This is particularly beneficial for individuals with limited credit histories, as it allows them to build credit through non-traditional means.

  2. Accuracy: By considering a broader range of data, these scores provide lenders with a fuller picture of a potential homebuyer’s financial behavior and reliability.

  3. Accessibility: VantageScore 4.0 can generate a score with just one month of credit history, compared to the six months required by FICO 10T. This makes it easier for new credit users to establish a score quickly.

Impact on Homebuyers in Palm Beach County

For homebuyers in Palm Beach County, the credit score changes could mean the difference between qualifying for a mortgage and being denied. With the inclusion of alternative credit data, more individuals will likely be able to demonstrate their creditworthiness. 

Preparing for the Change

As the new credit score models come into effect, potential homebuyers should:

  • Review Credit Reports Regularly: Ensure that all information, including alternative data, is accurately reported.
  • Pay Bills On Time: Timely payments for rent, utilities, and phone services can now positively impact your credit score.
  • Limit Credit Applications: Each application can slightly lower your score, so be strategic about when and how often you apply for new credit. If you are going to have your credit pulled by multiple companies, be sure to do them during the same time period. 


The shift to FICO Score 10T and VantageScore 4.0 represents a significant change in how creditworthiness is assessed. For homebuyers in Palm Beach County, this could open doors to homeownership that were previously closed. By understanding these new models and preparing accordingly, you can enhance your chances of securing the home of your dreams.

For more expert insights on navigating the Palm Beach County real estate market, feel free to contact me. I’m here to help you make informed decisions on your journey to homeownership.

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