As a smart consumer, you know that your credit score is critical to your money matters and to buying Maui real estate. A few years ago, most people didn’t have a clue what their credit score was. But in these tough times, it’s a new national obsession — and with good reason.

Your credit score dictates your interest rate on loans to purchase real estate, whether or not you can get a credit card, whether or not you can buy a house on Maui or car and even whether your credit card company cancels your card. A low credit score can haunt you, costing you thousands upon thousands of dollars.

That’s why we are writing to you today — to warn you about some major changes to the way your credit score is calculated.

There are seven major changes you must know about.

At a time when more people than ever are falling behind on their credit card, mortgage and auto loan payments, Fair Isaac Corporation, the creator of the popular FICO credit score formula, has introduced what they say is the most powerful upgrade to their scoring system.

Dubbed "FICO 08," it's supposed to do a much better job of predicting who will pay on time and who won't.

FICO scores range from a low of 300 to a high of 850. And, as lenders tighten up their credit standards, you may find that you need a FICO score about 20 to 40 points higher than last year just to get the same kind of deals you got then.

So it's more important than ever to stay on top of your credit reports and scores. Here are 7 ways that the new credit FICO formula changes could affect you:

#1: You Get A Little Leeway If You're Late
If you've ever missed a payment on an account that shows up on your credit report, you may have seen your credit score drop like a rock. With FICO 08, however, an isolated late payment affects your score less than it does now, provided that your other bills are paid on time.

But fall behind on several bills, and the impact to your score will likely be even worse. Keep in mind that, under any version of the FICO formula, a very recent late payment can have a significant impact on your score.

#2: Piggybacking Loophole Narrowed
If you are listed as an authorized user on someone else's credit card account, a spouse or child's perhaps, that account likely appears on your credit report, too. As long as the bills are paid on time and the card has a low balance, it likely helps your score. But with FICO 08, it's a different story.

That's because credit repair firms exploited authorized user accounts as a loophole to boost credit scores for people with bad credit or no credit. They would find someone with excellent credit, then allow a perfect stranger to "piggyback" on their good credit by adding them as an authorized user. The person "renting" the good credit waited until their credit score went up and would then get a mortgage or open new accounts on their own.

Fair Isaac is fighting back against this type of fraud by blocking certain types of authorized user accounts from affecting scores.

#3: Small Collection Accounts Ignored
If you've ever had a bill wind up in collections, you know it can be a serious blow to your credit. And, it's even more frustrating when that collection account is due to something like a small medical bill that slips through the cracks.

FICO 08 will ignore collection accounts where the original balance is less than $100. That doesn't mean you shouldn't pay those accounts, of course, but it does mean they shouldn't hurt your credit scores.

If you've been unfairly treated by debt collectors, learn how to fight back here.

#4: Avoid Debt? Watch Out!
If you're one of those responsible people who does NOT have a car loan or mortgage, and you rarely use credit cards, you may see your FICO score drop because FICO 08 places an even greater emphasis on a solid mix of credit types. It's completely absurd, but that's the way it is.

It's better for your credit score if you have both installment and revolving accounts. An installment account includes a car loan, student loan or personal loan.

#5: Experian Has Cut Consumers Off
Experian, one of the big three credit reporting agencies, recently decided to stop Fair Isaac from selling consumers any FICO scores based on the information in their Experian credit reports. (They still sell those scores to lenders, though).

Let's hope Experian and FICO will work out their differences so that you'll have access to this crucial information again soon. In the meantime, be warned that any score you buy that is based on Experian data is an "educational" score (some consumer advocates call them "FAKO" scores!), which may bear little resemblance to the real thing.

Until this mess is fixed, you can get your Experian credit report for free once a year at AnnualCreditReport.com, then use Credit.com's free "Credit Score Compass" to estimate your score. Learn more about your getting a copy of your report here.

#6: Maxed Out? Watch Out!
You may have heard that it's a good idea to keep your credit card balances below 50% of your available credit limit. But the ideal ratio is actually closer to 10%!

With lenders closing accounts and lowering credit limits for even the most creditworthy customers, it's getting harder and harder to maintain a low "utilization" ratio. FICO 08 will be even harder on consumers who get close to their credit card limits–just one more reason to pay down those balances!

#7: FICO 08 May Take a While to Take Hold
Remember, your credit score is calculated using information on your credit reports. And, so far, TransUnion is the only one of the three major credit reporting agencies marketing FICO 08 scores to lenders.

Our good friend and credit expert Gerri Detweiler, author of the forthcoming book "Reduce Debt, Reduce Stress," says the change reminds her of the hype around the upgrade from Window XP to Windows Vista – with some lenders embracing it quickly while others holding off before upgrading.

So What Does It All Mean?
Most people's FICO scores will rise with FICO 08, but some will be lowered. However, it's impossible to predict right now which way yours will go, and there is currently no place to purchase your FICO 08 score. This may be a great atribute in purchasing real estate and other hard assets in diversifying your portfolio.

So, stick to the basics: Make sure your credit report is accurate and up to date, fix any mistakes you come across, try not to fall behind on debts and pay down your balances on your credit cards as quickly as possible.