New FICO Score Aims to Increase Credit Access Featured

By Staff Writer November 02, 2018

Experian, FICO and Finicity announced a new credit score called Ultra FICO.

With Ultra FICO, a consumer grants permission to contribute information from banking statements, including the length of time accounts have been open, frequency of activity, and evidence of saving, which can be electronically read by Finicity and combined with consumer credit information from Experian to provide an enhanced view of positive financial behavior. 

Experian, FICO and Finicity estimate this new score has the potential to improve credit access for the majority of Americans and is particularly relevant for those who fall in the gray area in terms of credit scores (scores in the upper 500s to lower 600s) or fall just below a lender’s score cut-off. Consumers who are relatively new to credit with limited history or those with previous financial distress that are getting back on their feet stand to benefit the most. 

The Ultra FICO will launch as a pilot program in early 2019. The pilot is designed to validate the score and assess willingness of consumers to share financial data for a potentially higher score. Pilot participants were sourced across various lines of businesses.

The model developed by FICO will be implemented through Experian and integrated into a lender’s existing operational workflow. Borrower data will be aggregated through Finicity.

The Ultra FICO score builds off of the framework of the base FICO score, and is designed to reflect the same odds-to-score relationship so that the new score can be easily incorporated into lending strategies and origination/account management systems. The Ultra FICO is slated to be broadly available to lenders mid-2019.

Last modified on Friday, 02 November 2018 13:08

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