The company that created the popular FICO credit score, Fair Isaac Co, announced earlier this week that they will release another version of the FICO score next year called UltraFICO. The UltraFICO could grant access to credit millions of people who wouldn’t qualify for certain loans using the current FICO score, in particular those who have limited credit history.
UltraFICO will take into consideration a person’s assets, including savings and checking account. People will be able to raise their UltraFICO score through maintaining positive account balances in their bank or by using their bank’s billpay features and demonstrating responsible money management. A Fair Isaac rep said that there are 53 million people who do not have a FICO score and UltraFICO will catch upwards of 15 million of them.
ACDC serves hundreds of families each year through housing and financial education workshops. One topic that regularly trips up our clients is credit. We provide credit building seminars to teach people the basics of credit. Because many of our clients have only been in America for a few years, they often don’t have long credit histories and as a result, they have a hard time getting mortgage ready. Sometimes only when they decide to apply for a mortgage do they realize that their credit score is low or even non-existent.
We hope that new credit tools such as UltraFICO will open up more opportunities for our clients on their journey to home ownership.
If you’re interested in speaking with one of our housing and financial counselors for a free 1on1 consultation, please contact us.