How do credit scores work?

Currently, your credit score is primarily based on your payment history. However, in 2019, a new scoring system will begin to take new information into account. This will potentially mean big increases to your credit score.

What new information will be considered?

The new scoring system is called UltraFICO. UltraFICO will also consider how you manage your checking, savings, and money-market accounts. Now, you will be in control of adding additional information. For example, you can add information from your banking statements to reflect positive financial behavior. This includes how long your accounts have been open and active. Also, any evidence of your saving will be combined with your consumer credit information. This provides a more positive reflection of your financial activity, boosting your score.

Those who will benefit include anyone stuck in-between scores or just miss a lender’s cut-off score. However, the consumers who may be impacted most, are those without a long credit history or have experienced a financial problem, like bankruptcy.

So, how will UltraFICO work?

The idea behind UltraFICO is to help banks with loan approvals. If an applicant has a lower score, banks will have the option of using the UltraFICO score instead. This will allow the credit-reporting agencies to review your financial behavior. Using UltraFICO is not required, so banks will decide whether or not to use Ultra FICO.

What if my UltraFICO Score is Lower than my FICO Score?

Your UltraFICO score will be higher, unless you have overdrawn accounts or show that you are not managing your cash well.

Still looking for more information?

Visit to get more information about this change. If you have questions about your credit score or finances, call our office for a consultation today.