UltraFICO is a credit scoring model created by FICO, Experian and Finicity to expand access to credit to more consumers. This new score considers personal bank account information, which traditional credit scoring models don’t take into account, in addition to an individual’s credit history.
This opt-in credit model helps individuals with below or above average personal credit scores boost their existing FICO score. This can help you qualify for future loans or a better interest rate.
How Does UltraFICO Work
UltraFICO evaluates your personal banking information and behavior because it gives lenders a better picture of your overall finances. When you connect your checking, savings or money market account, it checks:
1. How long your account has been open
2. The frequency of your banking transactions
3. How much cash you have on hand
4. For a history of positive balances
To get your UltraFICO score, you have to first apply for credit. If a bank or lender denies your loan or credit card application, you can request that the lender uses UltraFICO instead of your FICO score.
Who UltraFICO Benefits
UltraFICO is designed to help all consumers, regardless of their credit score. However, it may be more beneficial if you have poor or fair credit (below 670) or minimal credit history. If you have a credit score that falls in that range, it’s more likely you won’t meet a lender’s minimum credit score requirements or qualify for the most desirable interest rates.
If you have good to excellent credit (at least 670), however, you may already meet a lender’s minimum credit score requirements and qualify for the best rate.
How to Sign Up for the UltraFICO Score
To sign up for your UltraFICO Score, you can visit Ultra Fico’s signup page. The program is still in its pilot phase and is only available through a small group of lenders. You can only access the program if you’ve been denied access to credit by one of those lenders or one has given you undesirable credit terms. However, you can sign up to be notified when the UltraFICO score becomes widely available to consumers.
The signup form requires you to provide the following information:
• Name
• Company and title
• Phone number
Once you fill in that information, you’ll have to select whether you’re interested in the product for yourself or your company. Then, agree to the terms and privacy notice before submitting your request.
UltraFICO vs. FICO
Although your UltraFICO score is based on your FICO score, the two aren’t the same. Your FICO score doesn’t take into account how you manage the money in your personal bank or money market account.
Instead, your FICO score relies on traditional credit score factors to calculate your score, as shown below.
| CREDIT SCORE FACTOR | SCORE WEIGHT OUT OF 100% |
|---|---|
|
Payment history
|
35%
|
|
Total amount of debt
|
30%
|
|
Length of credit history
|
15%
|
|
New credit
|
10%
|
|
Credit mix
|
10%
|
When you apply for credit, a lender can see your FICO score, but it won’t see your UltraFICO score if you don’t opt-in to the service.
UltraFICO vs. Experian Boost
Like UltraFICO, Experian Boost is another way for you to boost your FICO score. Instead of evaluating your overall banking habits, though, Experian Boost considers other non-traditional factors, like the payment history for your phone, streaming service and utility bills.
Experian Boost is also different from UltraFICO in that you’re not required to apply for credit to use its services. When you create an account, you’ll connect the bank account you pay your bills with to scan for boost opportunities.
By signing up for Experian Boost, you get free access to your Experian credit report and FICO score, and you get credit monitoring alerts.
Other Ways to Improve Your Credit Score
If you don’t want to wait until the UltraFICO scoring model becomes widely available, here are four steps you can take now to improve or build your credit score.
1. Pay Your Current Bills on Time
Since payment history accounts for 35% of your credit score, according to the FICO scoring model, you must pay your bills on time to improve or maintain your current score. If you pay your bills more than 30 days late, lenders can report the late payment to the credit bureaus, damaging your credit score. In addition, the late payment will remain on your score for seven years. However, its impact will lessen as time passes.
2. Review Your Credit Report
To review your credit report, visit AnnualCreditReport.com. Normally, federal law allows you to get one free copy of your report annually. However, due to the Covid-19 pandemic, you can get free weekly credit reports through April 20, 2022.
If you have inaccurate or incomplete information listed on your credit report, this could lower your credit score. For example, you could have a delinquent debt on your report that doesn’t belong to you. When this happens, under the Fair Credit Reporting Act, you have a right to dispute it.
To do so, you can report the false information to the three major credit bureaus—Experian, Equifax and TransUnion—and the company that reported it. The Federal Trade Commission has sample dispute letters on its website.
3. Ask Someone to List You as an Authorized User
Piggybacking off someone’s good credit history might boost your credit score. To do this, you’ll have to find someone willing to list you as an authorized user on one of their credit cards. The upside of having them list you is that their good credit history will reflect on your credit report.
However, the downside to this option is that if the person listing you as an authorized user defaults or misses a payment, this negative information will also reflect on your report.
4. Pay Down Your Debt
The amount of debt you owe plays a huge role in calculating your credit score—it accounts for 30% of your score, according to the FICO scoring model. Because of this, paying down your debt over time can improve your credit score. If you have credit card debt, try to keep your credit utilization ratio—the amount of debt you take on versus your overall credit limit—below 30%, if possible.
