UltraFICO Coming in 2019 to a Credit Report Near You

Submitted by Rachel on Thu, 11/08/2018 - 08:33
announcing the new UltraFICO credit score
A new credit score arrives next year with some fanfare
Image via Pexels


If you have been struggling with your credit score, there’s some great news for you. You may soon have a new option that’ll help you qualify for financial products or a loan you were hoping to land. UltraFICO is a trademarked name and score algorithm offered by Experian, and it could help a certain faction of consumers.

New UltraFICO credit score might help your finances

This new FICO credit score will launch in 2019 and could give you the added boost you need to qualify for better loan terms and credit cards. The UltraFICO score rolls out in a limited capacity in early 2019. It differs from other scores because it considers your bank account balance and cash management behavior to supplement other data already in your credit report.

Information evaluated by the UltraFICO scoring model includes how much you have in savings, length of account history, and the ebb and flow of your cash transactions. The UltraFICO score was created by the Fair Isaac Corporation, creators of the popular FICO scoring model. The score, which is being distributed by Experian, will be test-piloted with only a few lenders starting in early 2019.

How will the new score work?

The UltraFICO score would supplement the traditional credit score, but only for a certain segment of consumers. The score isn’t something everyone can utilize and will be made as an offer for a specific credit profile. It is an-opt in credit score offer. Here’s why.

Consumers ideal for UltraFICO have a credit score that falls immediately below the cut-off for approval for credit cards and loans (without paying exorbitant interest on a subprime loan). Your lender must also be using an Experian credit score since they’re the only bureau to offer UltraFICO initially.

For those with borderline scores (less than but close to 700), you may be offered the score. A few non-traditional lenders and credit unions will roll it out first. You must agree and opt-in because doing so allows the bureau to access your bank account and other financial payment data such as PayPal.

Experian won’t see details, such as what you spend your money on, but will be able to see balances and fluctuations in balances. They will also know how long the account has been open, whether it’s been overdrawn and other high-level info.

Benefits of UltraFICO

The score will help those with “thin” credit files who are just starting with credit but that have good money habits. Also, those rebuilding their credit after a financial crisis such as foreclosure, repossession or bankruptcy could benefit.

People who already have strong score don’t need to consider UltraFICO and won’t see an offer. Those new to credit stand to gain most from this new credit score, especially if they always keep a positive bank balance and have both checking and savings accounts.

Those new to credit can see a rise of 20 points or more on average under UltraFICO. You don’t need a ton of money in your bank account to benefit. If you keep a balance of $400 or more in your savings account, that puts you in a good position with UltraFICO – so start saving now!

Keep up good credit habits too

If you’re hoping to buy a car in 2019 or explore other credit opportunities and your score is teetering just below 700, UltraFICO might be on offer for you in the new year. But plan ahead! Set up a savings account and stash away close to $500 while keeping your checking in good standing.

Plus, keep up your other good credit habits like paying off credit cards in full each month, never running late on a payment, and paying bills before buying non-necessities. Lenders and creditors want to see good financial habits so stick with it!

To find out more about boosting your credit score after bankruptcy or other financial crisis, check out our Credit Score Keys DVD.