UltraFICO: What You Need To Know
FICO (Fair Isaac Corporation) is making a big splash with a new scoring model call UltraFICO, designed to help increase transparency for those with poor credit scores. Normally, an individual with poor credit would be denied access to loans due to the history of specific accounts on their credit profile. Those accounts usually consist of previous payment history on other loan accounts.
The new UltraFICO credit scoring model provides an “opt in” platform for people with poor credit scores to show their credit worthiness using data from their checking, savings, or money market accounts. This product is specifically for consumers in the high 500’s or low 600’s, based on a recent article from USA Today.
This could be a big help to those looking to improve their credit worthiness after a life event that has negatively impacted their credit score. Unfortunately, it’s not clear whether the UltraFICO scoring model will be used in the mortgage industry any time soon.
If you’re trying to get credit qualified to buy a home, but deal with credit challenges, you have options. For example, you can schedule a free evaluation here!
Here are a few more resources regarding the new UltraFICO score: