New “UltraFICO” Credit Score Based on Checking History (by FICO)

If you have at least $400 dollars in your checking account and use it frequently, you’re likely to see a credit score increase with the new UltraFICO score.

What is the UltraFICO score?

The UltraFICO score is a secondary credit score that you can use if the regular credit score is not sufficient enough. It’s like a reconsideration line for credit cards. The new score takes into consideration your assets and checking account activity.

For example, if you get denied for a credit card due to your credit score being too low, you can ask the credit issuer to use the UltraFICO score instead.

The UltraFICO score lets you choose which accounts you want them to see. There are 3 main things they consider:

  1. Current checking account balance ($400+)

  2. Transaction frequency

  3. Overdraft history

According to FICO, 26 million subprime borrowers will end up with higher credit scores, with nearly four million seeing an increase of at least 20 points.

Why does the UltraFICO exist?

The UltraFICO score was created allow thin-file and sub-prime borrowers to have access to credit, that they otherwise wouldn’t have been eligible for.

A few interesting stats from the Wall Street Journal article:

  • Banks have been chasing ultra-creditworthy borrowers for the past 10 years

  • 58.2% of U.S. consumers with a FICO credit score have a 700+

  • The average FICO score is 704

  • A score of 670 or below is considered subprime

  • Approximately 7 million applicants who have a low credit score as a result of a thin credit file will see an improvement in their credit score under the new system

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