Right now, everyone is talking about the “fiscal cliff” - the potential crisis that will occur if our elected lawmakers are unable to extend tax cuts and avert millions of dollars in spending cuts that will take effect in the New Year. As the deadline approaches, you may be wondering what impact, if any, would the fiscal cliff have on your FICO Score? The good news is that there is no direct effect on the score associated with the main factors driving the potential fiscal cliff. Your income and the amount of taxes you pay are not considered in the calculation of your FICO Score. However, the failure to extend the tax cuts and/or avert spending cuts could have a negative indirect effect on credit scores. Most experts agree that just about every … [Read more...]
