New FICO credit score could broaden access to more lending options
“Introducing Ultra FICO Score: Revolutionizing Credit Accessibility”
FICO is releasing a new score that could enhance credit scores by linking with checking, savings or money market accounts. According to their website, the Ultra FICO Score could broaden access to more lending options and better terms. You may soon be able to lift your credit score by leveraging your checking and savings account data.
With the slogan “The Score You Build”, the UltraFICO Score shows lenders indicators of responsible financial behavior, not visible on a traditional credit report, including evidence of savings and keeping a healthy average balance; maintaining a bank account over time, avoiding having a negative balance and regularly paying bills and making other bank transactions.
This additional information could help boost the credit scores of some of the 79 million Americans who have poor credit histories, explains USA Today, along with the 53 million who have no credit score at all under the traditional FICO model.
“We’ve been focused on financial inclusion, and what we’ve done can potentially improve access to credit for the majority of Americans who participate in it,” says Sally Taylor-Shoff, vice president of score at FICO.
This new score is a joint Financial Inclusion partnership between FICO, Finicity, and Experian and it will be initially available through a small group of lenders as part of a limited pilot phase for consumers who cannot currently access credit or could be eligible for better terms, FICO explained.
FICO has designed the initial pilot phase to fine-tune the deployment of the UltraFICO Score. As FICO completes this phase, they will make the UltraFICO Score more broadly available.
“The UltraFICO Score is a leap towards financial inclusivity. It offers a new way to improve credit scores using banking data. This method evaluates savings, account longevity, and transaction history. It could benefit millions of Americans with poor or no credit history. The score is currently in its pilot phase. It aims to redefine creditworthiness and make credit more accessible. Credit will be tailored to individual financial behaviors. Successful implementation could lead to a more equitable financial system. It broadens credit access beyond traditional parameters.”
To learn more, Visit ScoreCEO.
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