A three-way partnership has announced a new credit score which should help consumers and mortgage lenders alike.
UltraFICO Score was launched at the Money 20/20 USA Conference on Monday by partners FICO, Experian, and Finicity. It will run as a pilot program in early 2019.
The new score enables borrowers to enable lenders to access information from banking statements, including the length of time accounts have been open, frequency of activity, and evidence of saving. This can be electronically read by Finicity and combined with consumer credit information from Experian to provide an enhanced view of positive financial behavior.
"This changes the whole dynamic of the lender and customer relationship," said Jim Wehmann, executive vice president, Scores, at FICO. "It empowers consumers to have greater control over the information that is being used in making credit risk decisions. It also enables a deeper dialogue between the consumer and lenders to help both parties make better financial decisions. It's a game changer."
Better access to credit
The partner firms believe that the new score will provide better access to credit for most Americans, especially those in the grey area of upper 500s to lower 600s; and those with relatively new or previously distressed credit profiles.
"As the consumer's bureau, our goal is to help empower consumers and to give better access to credit for more consumers, all while promoting fair lending," said Alex Lintner, president, Consumer Information Services, Experian. "Through this project, we've found a new way to use consumer-permissioned data that allows lenders to make better decisions and helps consumers gain access to credit."
Finicity’s CEO, Steve Smith says that the new score will allow Americans to benefit from positive financial behaviors.
“We are proud to have created a new way for consumers to share financial information, safely and securely so that a new UltraFICO™ Score can be created," he said.
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