JusTax Services

🗣IMPORTANT CREDIT UPDATE:

The New "FICO 10T" is Here

​Are you planning to buy a home or apply for a loan in 2026? There is a major shift happening in how your credit is calculated, and we want to make sure you’re prepared!

​The industry is moving toward the FICO 10T model. The "T" stands for Trended Data, and it changes the game for your credit score.

​What’s Changing🤷🏾‍♀️?

​In the past, credit scores were a "snapshot" of your debt on a single day. Now, lenders are looking at a 24-month window of your financial behavior.

​The Good News: If you’ve been consistently paying down your balances over the last two years, FICO 10T may actually reward you more than older models did.

​The Warning: If your credit card balances have been steadily creeping up month-over-month, your score could be impacted, even if you’ve never missed a payment.

​Why It Matters Now🙋🏾‍♀️?

​As of this spring, major mortgage lenders (like Fannie Mae and Freddie Mac) are beginning to use these trended scores to evaluate home loans. Your "trajectory" is now just as important as your "total."

​Our Advice👩🏾‍🏫:

​Avoid "Minimum Only" Payments: Aim to pay more than the minimum to show a downward trend in debt.

​Keep Utilization Steady: Avoid sudden spikes in spending before applying for major financing.

​Think Long-Term: Your habits today impact your borrowing power for the next two years!

​Questions about how your tax situation or debt management impacts your financial goals? Send us a DM or visit us at the office! We’re here to help you navigate the numbers.

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