The UltraFICO credit model may help you qualify for better mortgage rates in 2019
If you’re dreaming of your dream home but need to land a mortgage, good news may be around the bend for you. The pending addition of UltraFICO may make mortgages, and other loans, more accessible for many consumers.
Millions of Americans may benefit from a new credit scoring system called UltraFICO.
UltraFICO helps consumers build a credit score based on checking and savings activities, as opposed to traditional aspects of credit scoring. The UltraFICO credit model would consider the amount you have in savings, how long your bank accounts have been open and how active they are. If you’re keeping a decent balance in your bank accounts and not bouncing checks, UltraFICO could do great things for you.
It’s your choice.
UltraFICO is an opt-in feature, so participation is up to you. If you already qualify for the best mortgage and credit terms and have excellent credit, UltraFICO may not be something you want to consider. The new scoring system is likely to help the 7 million consumers with scores in the upper 500 to low 600 range. UltraFICO can also assist those with no credit history.
Look for it in 2019.
UltraFICO is set to be distributed by credit bureau Experian, one of the three major credit reporting bureaus, and is scheduled to be pilot-tested on a limited basis in early 2019. If you’re interested in utilizing UltraFICO in 2019, take great care of your checking and savings accounts, avoid bounded checks and keep at least $400 in your accounts.