How Credit Scores are Changing — and What It Means for You

Just as your credit score can change, so can the way it’s calculated. Beginning in 2025 and continuing into 2026, updates to credit scoring models are designed to give lenders a fuller picture of your credit behavior — especially for those with limited credit history. Whether you’re rebuilding or simply monitoring your score, understanding both key credit factors and recent scoring changes can help you better manage how your credit is rated.

As of fall 2025, Buy Now, Pay Later (BNPL) loans are being included in certain FICO® score models. Because BNPL is a form of credit, responsible use may help individuals — especially those without a long credit history — begin building credit. However, missed or late payments can negatively impact your score, just like other types of loans. 

Credit scoring models are also evolving in how they evaluate financial behavior. Newer FICO® models use “trended data,” which looks at patterns over time instead of a single moment in time. This helps lenders see whether balances are improving, staying consistent, or increasing.

In addition, VantageScore® models — now approved for use by major mortgage purchasers like Fannie Mae and Freddie Mac — give lenders more flexibility in which credit score they use. These models may also include alternative data, such as rent or utility payments, helping individuals with limited traditional credit demonstrate responsible financial habits.

 

 

One of the biggest shifts in credit scoring is how your behavior is evaluated. Instead of focusing only on your current balance or score, newer models look at trends — such as whether you consistently pay on time, gradually reduce balances, or rely heavily on short-term credit.

Steady improvement and consistency can work in your favor, while repeated missed payments or high balances may be more visible to lenders. The good news is that it’s never too late to build or rebuild positive credit habits.

 

 

One option we offer at First Mid is a Goal Setter Account, designed to help customers establish or strengthen their credit history. This product combines an installment loan with a certificate of deposit (CD). The loan proceeds are placed into a CD, and as customers make monthly payments, their activity is reported to the credit bureaus. At the end of the loan term, customers receive the CD funds plus any interest earned — all while building positive credit history.

As credit scoring models place greater emphasis on long-term behavior, it’s equally important to protect the credit you’ve worked to build. That’s where fraud monitoring and credit alerts play an important role.

 

 

As scams and identity theft continue to rise, fraud protection tools and consumer safeguards have evolved to better limit long-term damage to your credit score. Recent changes include:

• Faster safeguards that help protect your score when fraudulent accounts or inquiries are reported
• Quicker detection and resolution of fraud-related activity, reducing how long errors remain on your credit report
• Stronger dispute protections, requiring credit bureaus and lenders to investigate and remove verified fraudulent activity

These improvements make it easier to protect the credit you’ve worked on building. Because credit scores can vary depending on the scoring model a lender uses, staying aware of changes and monitoring your credit regularly is more important than ever.

 

 

Monitoring your credit helps you stay informed and respond quickly if something looks wrong. Tools like those available in the First Mid App allow you to track your credit score, monitor account activity, and review indicators like your debt-to-income ratio.

Financial wellness is a balance of offense and defense — making smart financial decisions and protecting your credit as you build, rebuild, or prepare for major milestones like buying a home.