FICO recently announced testing a new type of credit score for individuals who do not have established credit. FICO estimates that nearly 15 million consumers could improve or establish credit through the new UltraFico score. This score is a new way to demonstrate creditworthiness of individuals who may be too young to have established credit, or may have a poor credit score.
This score looks at overall financial habits of the consumer by looking at how well they manage their bank accounts. If an individual manages their checking account balance well, without letting it slip into the negative, their score is higher than someone who frequently overdrafts. The score can also take into consideration savings habits by monitoring savings accounts.
Fico believes this new credit score will be used as a second chance for many, and a first opportunity for those who are too young to have established credit.
Contact your Fairfield Bankruptcy attorney for your fresh start at (707) 385-0422.
Categorized in: News