What is The New Ultra FICO Credit Score All About?


Danny Frio
Mortgage Broker in Geneva, IL

December 4, 2018

Starting in 2019, Lenders will have access to The NEW UltraFICO credit scoring system. For the first time, consumers will have the opportunity to give permission to include their personal Checking and savings account information. This new Scoring model is designed to help those with little to NO Credit as well as those that just fall short of qualifying on their Credit application. The system is deeming this as a SECOND CHANCE for borrowers.

So what items is the Ultra FICO scoring system going to look at:

  • Average Balances
  • No negative balances
  • Steady payment being made

As stated by Sally Taylor who is the VP of FICO

Who is using the Ultra FICO Score:

The new scoring system will ONLY be available when a lender pulls a credit report from Experian. Experian has partnered with FICO as well as Finity to offer this product. Finicities role in this is to pull information from the consumer's personal bank account and report their findings back to Experian. Information such as amounts paid, names of creditors and other information will NOT be used or disclosed back to Experian for many legal reasons especially Privacy laws that Lenders face on a daily basis.

Ultra FICO is expected to be ready to begin its pilot program early in 2019 and will be available to both consumers and lenders at that time. However, all of this will be up to the LENDERS and if they will use and embrace this program. Changing the way lenders use and read consumers credit is a big challenge. To explain it further, FICO came out in 2014 with an updated credit scoring system FICO 9, and upgrade from FICO 8, that came out in 2009. FICO 9 has still to this day not gained any momentum.

The good news is this program puts the consumer in charge. You, the consumer, will choose if you want to take part and grant access to your Lender and Finicity to compile the data necessary from your checking and savings account. For some, this system will change your loan decision from a denial to an APPROVAL. However, for others, it may, in fact, hurt your credit and actually reduce your credit score. So be careful before you agree to having your lender obtain your Ulta FICO score.

I am a mortgage broker and have been for over 30 years. When someone applies for a Mortgage 90% of all loans are put through Fannie Mae or Freddie Mac. These two entities are slow to change and the technology behind the scenes in more complex than most can imagine. I personally feel that the Ultra FICO will start off with personal loans, Insurance and car loans well before it will be embraced by the Mortgage Industry. Only TIME WILL TELL.

Bottom line: The Ultra FICO will one day be a GAME CHANGER for those with little to NO credit and for those needing to offset some old credit that is affecting their credit Scores. But as for 2019, I do not think this will be a GAME CHANGER for everyone.

In conclusion:

  • Ultra FICO has been developed for those with Little to No credit
  • Experian will be the only credit agency utilizing this new Scoring system
  • Your personal checking and savings account will be added to your credit scoring model.
  • Average balances bounced checks, negative balances, as well as payments being made each month, will be factored into the score
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