Acima Blog

You're More Than A Three-Digit Credit Score

What You Need to Know About the Upcoming FICO Score Updates

Move over, FICO.

An update called “UltraFICO” is headed our way in early 2019 and it sounds like it may be a game-changer for Millennials and other so-called “credit-invisible” individuals. So… what is it?

UltraFICO is an opt-in credit model that pulls information from your checking, savings, or money market accounts to paint a more complete picture of your credit-worthiness than what is traditionally included on your credit report. It’s expected to be offered as a “second-chance” option by lenders who want to offer credit to potential borrowers who don’t have enough history to earn them a decent score.

It will also be available to those who have had minor credit issues in the past. People who are new to credit, like Millennials, have little history to indicate how well they might handle a loan. In the past, this has worked against them but with UltraFICO, they will be eligible for more lending options than ever before.

Traditional FICO credit scores range from 300 to 850. This new model may raise credit scores by 20 points or more for those with new credit and will be especially helpful for those with scores in the upper 500s to lower 600s, which is considered bad to fair. FICO has said that “among consumers who had kept a positive balance in a deposit account and maintained an average of at least $400 in a savings account, 70% improved their scores with the addition of that information.”

This is definitely something we’re excited about at Acima, and we will be watching for more updates on UltraFICO in the coming months. We’ve been using a similar model to offer No Credit Needed leasing to buyers all over the country for years. We know that people are more than just a three-digit score, and this new update means lenders will be able to get a more complete picture of someone’s credit-worthiness… which is always a good thing!