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Smart Money: UltraFICO™ Credit Score

A second chance for people who have been denied credit under the traditional credit score.

What Is a Credit Score?

• A credit score is a statistical measure of the likelihood that a person will repay debts in a timely manner.

• The most common metric is the FICO® created by Fair Isaac Corporation.

• FICO® scores range from 300 to 850, with a higher value being more favorable.

Below 580: Poor (well below U.S. average; a risky borrower)

580-669: Fair (below the U.S. average)

670-739: Good (near or slightly above the U.S. average of 704)

740-799: Very good (above the U.S. average; a dependable borrower)

Over 800: Exceptional (well above the U.S. average; an exceptional borrower)

• FICO® scores are determined using five categories of data.

Payment history (approximately 35% of a FICO® score)

Amounts owed (approximately 30% of a FICO® score)

Length of credit history (approximately 15% of a FICO® score)

New credit (approximately 10% of a FICO® score)

Types of credit used (approximately 10% of a FICO® score)

• Some consumers with little or no borrowing history may not have a FICO® score.

What Is an UltraFICO™ Credit Score?

• UltraFICO™ looks beyond solely your debt history.

• The UltraFICO™ score will include data from your checking, savings or money market accounts.

• Factors that positively affect your UltraFICO™ score.

Evidence of savings and maintaining a healthy average balance.

Maintaining a bank account over time.

Avoiding negative account balances.

Regularly paying bills and making other bank transactions.

• Seven out of ten consumers who show an average savings balance of $400 without negative balances in the past three months should see an increase in their score.

• Over 15 million consumers who do not currently have a FICO® score could receive an UltraFICO™ score.

• UltraFICO™ may provide an alternative for borrowers who might otherwise be denied credit.

• UltraFICO™ is expected to become available in early 2019.

How Do I Obtain an UltraFICO™ Credit Score?

• Consumers must opt in to allow access to their banking history.

• The UltraFICO™ score will initially be available through a select group of lenders during a pilot phase of the program.

• The UltraFICO™ score is expected to be more widely available after the pilot phase of the program.

• Visit https://www.fico.com/ultrafico/ to sign up for the UltraFICO™ score once it becomes available.

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