UltraFICO, A New Credit Scoring System, To Launch In 2019

Today, Experian, FICO and Finicity unveiled a new development called the UltraFICO score. This credit score model combines information from an existing FICO credit score with a consumer’s financial data, such as savings and checking accounts. This creates a more holistic view of how a person handles money.

The creators believe this new scoring model will allow more consumers to obtain the credit approvals they need, especially if they fall just below a lender’s cutoff score. This could also be beneficial to young adults and those without established credit scores, giving them a jumpstart into the credit industry.

Consumers must agree to share their financial data in order to receive an UltraFICO Score. The program will launch as a pilot early next year. The creators will test how willing consumers are to give access to this information, if it means potentially improving their credit score.

Nick Thomas, Co-Founder of Finicity, said in an interview, “Consumer contributed data…includes more people into the financial ecosystem. It has the potential to be able to score the unscorables.”

With the UltraFICO Score, lenders can view real-time financial data about the applicants to evaluate their credit worthiness. Consumers agree to provide this data as part of their credit portfolio, enhancing what may otherwise be considered a “thin file.” According to product details from FICO, “The UltraFICO Score follows the same general blue-print as the traditional FICO Score and is designed to be scaled the same.”