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THE NEW FICO SCORE TO BE UNVEILED IN 2019 COULD BOOST YOUR CREDIT WORTHINESS

For the past 27 years, FICO Credit Scores have been the
bedrock of most consumer- lending decisions in the US.
These scores were based mostly on consumers’ history of
paying mortgages, credit card balances and loans. The FICO
model has been periodically updated to help lenders to be
more informed about credit-granting decisions and help the
consumer get access to the credit they need. The most widely
used version is FICO Score 8.
The latest update is that Fair Isaac Corp. (the company
behind FICO) has decided to test out a new type of scores
called UltraFICO with credit reporting agency Experian and
a technology company called Finicity. This will be unveiled
early next year (2019) and will consider the borrowers’ bank-
account balance and cash-management behavior in addition
to the traditional credit.
The move to test the new scoring system comes in the wake
of some financial companies who are supplementing
traditional credit scores with an analysis of customer’s bank
account to assess consumer’s creditworthiness.

KEY FEATURES

Here are a few key features as to how it works and who could
benefit from the new UltraFICO scoring system.

  • The new FICO score will be optional and will be offered
    only to consumers who opt for it. They will be given the
    choice to do so when they do not qualify by the more
    traditional systems. However, they should also agree to
    share with the lender personal information, and allow
    them to access their banking and saving data to evaluate
    overall financial responsibility.
  • This new system will potentially improve the credit
    scores of many Americans who have less than stellar or
    borderline credit score ( upper 500 to the low 600s ) by
    20 points or more depending on the details of their
    financial profile.
  • “People who have strong credit scores need not consider
    UltraFICO scores but they could use it as a second
    chance,” says Sally TayloShoff Vice President of
    FICO.
  •  Consumers with an average bank-account of $400 and
    with no history of negative balances are more likely to
    benefit because it will take into account how old your
    bank-account is, the frequency of activity and evidence
    of saving.
  • It will particularly benefit millennials( people aged 18-
    34) who did not have the opportunity to build up a
    credit history. It will also help people who are in a
    financial rut and are rebuilding their credit scores.
  • It also might be easier for millions of Americans to get
    any type of loan including a mortgage loan-especially if
    they have a subprime credit score (500-600 FICO) or
    have little or no credit history at all. The new UltraFICO score has “definitely a lot of promise”
    as an alternative scoring method, provided the consumers
    have true control over what level of detail they share and
    whether to share information or not.

    However, it is not clear whether the other two credit bureaus
    Equifax and TransUnion will eventually participate in the
    Ultra FICO test. TransUnion in an email statement said that
    “it applauds all efforts that promote financial inclusion and
    expand economic opportunity” but Equifax did not comment
    on this.“According to Smith” The new scoring system is
    revolutionary as consumers will play a direct role, for the first
    time ever to determine their own credit scores.
    FOR CREDIT SCORE ENQUIRES CONTACTTOLL-FREE NO. (800) 400-ZINU(9468)