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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