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Your credit score may be changing soon whether you do anything different or not. New changes are coming to how your FICO credit score is calculated. FICO, a.k.a Fair Isaac Corp, based in Minneapolis, is the company that provides the recipe for credit scores for millions of Americans. In 2008, it is changing its scoring model and this could affect how easily you get credit in the future.

It's called FICO 08 and they claim their new model will do a better job at predicting the likelihood of a borrower defaulting on a loan. It will be more forgiving of consumers who occasionally slip, but will take a harder stance on repeat offenders. They claim this should help lenders reduce default rates on their consumer credit by between 5% and 15%.

The reason?

Lenders desire a more-accurate measure of credit risk because of rising loan defaults as more and more subprime mortgages go bad as well as other types of consumer debt, including auto loans. This has necessitated lenders to tighten up on credit.

The FICO score is used by 90% of the 100 largest banks and have a credit stranglehold over the lives of millions of people. That said, some consumer groups have raised doubts as to whether credit scores accurately measure credit risk for many consumers.

Consumers could start seeing their new FICO scores by the spring. FICO 08 will look very similar to the existing model. Scores will still range from 300 to 850 -- the higher the better -- and the model will continue to use the same metrics, i.e. consumers' debt level, payment history, length of credit history, number of recent credit openings and inquiries, and the type of credit used. These factors will all be used to calculate credit scores.

But the new model will do a better job of separating "good risk" from "bad risk," particularly for subprime borrowers, especially for those looking for new credit.

"Consumers who are low risk will score better with the new FICO version, and consumers who are high risk will score lower," says John Ulzheimer, president of consumer education for Credit.com, a personal-finance Web site.

Higher-risk borrowers may find it tougher to get credit, while low-risk borrowers will find better deals from lenders. Two people having the same FICO score now might see two different scores after FICO 08 because the new model gives more points to consumers who maintain a variety of credit, such as credit cards, a mortgage and auto loan, etc. That's because they can show the ability to manage payments on various types of loans. That said, the new FICO 08 model will penalize those who use a high percentage of their available credit.

It's the consumers responsibility to make sure their information on their credit report is accurate. If consumers feel their FICO score is too low, they need to dispute any erroneous entries with the three main credit bureaus, Experian, TransUnion, and Equifax. Credit repair involves getting a copy of your credit report and if you see any errors or missing information, then disputing any entries you don't agree with and have them either removed or corrected.

Millions of people each year have to deal with the headaches of bad credit. If you are one of them, you are not alone. Getting turned down for credit again and again is incredibly frustrating-I'm sure you'll agree.

Even if you have just one negative item on your credit file, getting it removed could save you thousands of dollars and plenty of grief. It could be the difference between getting approved for credit-or not.

There are two acts, the FCRA (Fair Credit Reporting Act) which was recently revised into the Fair and Accurate Credit Transactions Act (FACT Act), and the FDCPA (Fair Debts Collections Practices Act). These two acts were set up to protect your credit rights.

Sounds like legal stuff right?

Don't worry, they're simple to understand. What they basically do for you is hold your creditors and credit bureaus responsible-legally. Which means every claim against your credit they have to back up, and prove-which is a beautiful thing.

Here's where it gets good...

Because of those two acts, anyone can get a copy of their three credit reports. They'll charge you a $29 fee to get them, but it's a must. Then you need to sift through them and find the negative items, then work to get as many of them legally removed as possible. Things like late payments, outdated or inaccurate information, judgments, collections...the usual. Basically all the things that home lenders, credit departments, and so on look at when they decide whether to give you that car, home loan, credit card, or interest rate you want.

The bottom line is this...

As a consumer, your rights will still be protected with the new FICO 08. Any information on your credit report that contains inaccurate or negative information can be disputed, and if the bureaus can't prove it to be true, it has to come off your report. Get it removed and your score goes up!

Credit repair is like changing the oil in your car-who has time to do it? I've taken a look at almost every credit repair company on and off the net, and SURPRISE!...they typically charge you as much as $500 or $600 (Some even over a $1,000)"attempt" to repair your credit simply by charging you monthly fees that add up month after month. Sounds ridiculous, but it's reality. I've found one credit repair service I highly recommend because they are not only very good at what they do, they are quite frankly, the most affordable credit repair program I've ever found.

If you sign up now, not only will they send you a FREE Bonus Financial Guide called the "Insider's Guide to Success", better yet, you don't have to pay the $30 for your credit reports. It's included in their service if you act now!

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Author Bio: Chris Crawford has been helping consumers become debt-free without bankruptcy for over 4 years. He is a debt specialist in the debt settlement industry helping others with debt negotiation. He provides access to expert personal coaching to help consumers achieve professional results at a fraction of the cost.