The creation of a new credit score designed to improve consumer access to credit by tapping into consumer-contributed data has been welcomed by the head of the leading national trade organization of consumer reporting agencies and associated professionals.
The combined team of Experian
introduced the UltraFICO Score
earlier this week during the Money 20/20 USA Conference. According to the companies, the new score will be able to incorporate data including checking, savings and money market accounts for evidence that consumers have a track record of responsible financial management activity. UltraFICO Score is scheduled to launch as a pilot program early next year, and the three companies stated it has the potential to improve credit access for the majority of Americans.
“This is very dynamic change using non-traditional scoring,” Clemans said. “This makes perfect sense by allowing consumers’ good credit and good money management to show up along the traditional scoring methods.”
Clemans added that the full implementation might take some time, noting that “lenders are going to have to get comfortable with it.” While he was uncertain how long it would take before UltraFICO was adapted, Clemans stated he hoped it would be sooner than later.
“The GSEs are still using scoring models that are pushing 15 years,” Clemans said. “Let’s hope this does not take so long.”