What is UltraFICO?
In 2018, FICO, Experian, and Finicity introduced the UltraFICO score. The key intention of it is to give consumers more access and control in the credit scoring procedure. It’s sometimes called the second-chance score as it has some favorable options for non-traditional borrowers. But what is UltraFICO in terms of its usefulness in getting you on track or back on your feet?
We’ll take a deeper dive into this opt-in credit scoring model and find out.
What is UltraFICO?
UltraFICO is a service that lets consumers leverage their money management abilities to hike up their credit scores. It’s a newer form of the FICO scoring model that gives consumers more access, especially those who had difficulties obtaining a regular FICO score.
Thus, UltraFICO is potentially significant for those who feel traditional credit models don’t suit them. Among those are people with a limited credit history or who are new to credit and those who previously made financial missteps.
People who praise UltraFICO highlight that it gives consumers more control over the information used by creditors when making credit risk selections. At the same time, there is a more honest dialogue between lenders and consumers, so there is a potentially better chance of an optimal financial decision.
How Does UltraFICO Work?
UltraFICO opens a whole new portal of credit score repairment and money management.
To get UltraFICO to work, you have to grant FICO’s data partner access to scan your bank account transactions – from checking, savings to money market accounts. FICO’s partner is Finicity, one of the three companies that founded UltraFICO as a pilot program and partnership.
Let’s go over the factors that the scoring model takes into account:
● How long have your accounts been open.
● How frequent and recent are your bank account transactions.
● Evidence of cash on hand.
● A track record of positive account balances.
The Fair Isaac Corporation (FICO) will then use this data and review it along with your Experian report. That will give them your UltraFICO score.
To put it differently, this is like an upgraded FICO score – UltraFICO considers everything the previous one does as well, like payment history, credit history track record, credit mix, debt information, etc. But, it also adds data from your bank account to give a more favorable view of your financial habits.
UltraFICO is at the moment in its pilot phase and available just via a selected group of lenders. You can still sign up for free. To access the program, you have to have been denied access to credit by one of the selected lenders or by one that has given you unfavorable credit arrangements. Even if UltraFICO rejects you, you can sign up just to be notified when the scoring model becomes available to everyone.
To sign up, you need to provide the following information:
● Full name
● Email address
● Company and job title
● Telephone number
So, signing up for this service is almost zero hassle. But, how does it benefit your situation?
How Can It Help?
The UltraFICO score can end up useful for credit newbies and those trying to rebuild their credit. Lenders can be wary of loaning to those who don’t have much of a history or have evidence of unfortunate financial events in their past. But we live in unpredictable times, so any one of us can hit a wall at any moment.
So, if you can’t qualify for a car loan, better credit cards, or a mortgage with your score, you can ask lenders to review your UltraFICo and gain another perspective on your financial behavior.
It costs you nothing to try it out. That’s right – UltraFICO is free (for now), although some consumers feel they will be paying the service in another currency – their data. Some do not like the fact that Finicity gets access to their accounts.
To try and qualify for better loans, all you have to do is apply for them as usual. If your score is lower than required, the creditor may ask to see your UltraFICO score. That is optional since lenders don’t have the right to ask for your banking activity.
Depending on your needs, this may be just another way for credit bureaus to get your banking information, or it may be your saving grace for a better credit score. If you are unsure what your next move should be, consult a credit expert who can review your tri-merge report. At White, Jacobs and Associates, the team works hard to create a personalized approach for each client, pouring over all of their credit reports with diligence. Dealing with credit bureaus and creditors is filled with the world of fine print and hidden obligations. Having an expert on your case will keep your credit score healthy and possibly even bring it further up!