Credit scores can be scary any time, but it’s almost Halloween.

FICO Score Companies have joined forces for the good of consumers.

UltraFICO is the new program to increase your loan profile with your (permitted) bank data search.

With the bone chilling holiday just around the corner, Palm State Mortgage Company will show you something really frightening:  Credit Scores.  Let’s look at the latest news about Credit Scores. And, Surprise! The news is actually not frightening at all, and it might be good news for your fiscal life.

Credit Scores and A New Scoring Model

Recently, Experian, FICO and Finicity reported that a new way of doing things might expand your credit access. In fact, the new system “could expand credit access for millions of Americans.”  Your refreshed and updated UltraFICO credit scores might make it possible for you to get a mortgage and buy a new home, although your FICO scores caused you to be previously rejected.

UltraFICO and Your Credit Scores

For background, ABC News reported,“Currently, your FICO score is a number that predicts how worthy you are as a borrower. Many lending organizations such as credit cards, mortgages and car loans are based on your FICO score.

The three credit score companies are bringing in the new not-so-scary system by January of the year 2019. It will benefit several types of consumers. Now, who needs credit score help?  You might have the advantage of UltraFICO if you belong to one of the following groups:

  • consumers with credit scores in the upper 500s and lower 600s,
  • people with a limited credit history,
  • consumers with a back history of previous financial distress.

Let’s Meet UltraFICO–The Credit Scores of the Future

You will probably hear a lot about the new UltraFICO program, so let’s set the record straight about what it is and

Do You Know Your Credit Scores?

Do You Know Your FICO Scores?

what it does for consumers:

1.     First of all, we want you to know it is a completely voluntary program. And you will understand why when we tell you what it does if you (gulp!) opt in.

2.    UltraFICO will, with your permission, investigate more than Experian, Equifax and TransUnion ever do. UltraFICO will delve into your consumer banking data.

3.    They will examine your checking and savings accounts in order to observe your money management techniques.

4.    You would only use UltraFICO if you had received low FICO scores, and were thus denied a loan.  Then you can appeal to lenders to utilize your UltraFICO scores instead of your FICO scores.

Needless to say, the UltraFICO scores demonstrate certain consumer behaviors that lenders greatly appreciate.  Examples include keeping 400.00 in your bank balance at all times.  Likewise they like you to pay all bills on time.

Is it Creepy to Investigate Your Bank Accounts?

The answer to the question above is that it is not creepy or unusual if you want to buy a house, car or other big ticket purchase. Eventually you will give such information to your mortgage lenders anyway.

UltraFICO’s Ultra Research into Your Financial Behavior

Opting into this program means UltraFICO will look into such

UltraFICO reveals your banking data in hopes of getting a loan.

If your homeloan is denied due to low credit scores, you can appeal to lenders to see your UltraFICO data.

details as how long your banking accounts have been open.  Also, they can observe how often you use the accounts.  Plus, they investigate your saving habits. Current credit score companies do not investigate these details when they calculate your FICO credit score.

For most people, the UltraFICO score will raise the scores and have a good effect on your ability to buy a home.

1.    When you opt into UltraFICO, your banking data will be electronically read by Finicity

2.    Then Experian will combine the bank data with consumer credit information from your files.

Finicity CEO Steve Smith stated, “This approach allows Americans to benefit from positive financial behaviors…” And he added, “We are proud to have created a new way for consumers to share financial information, safely and securely so that a new UltraFICO Score can be created.”

UltraFICO Scores:  Changing the Dynamic of the Lender and the Customer

Ultimately, UltraFICO might help as many as 7 million people who cannot today receive a loan.  The system has made some new, enormous changes in scoring methods. ABC reported that applicants might even end up with smaller mortgage prices after an UltraFICO data investigation.

Jim Wehmann, FICO Scores executive vice president spoke eloquently about the new program, stating, “This changes the whole dynamic of the lender and customer relationship…“It empowers consumers to have greater control over the information that is being used in making credit risk decisions.”

Terrific Take-Aways from UltraFICO Supporters

He added, “It also enables a deeper dialogue between the consumer and lenders to help both parties make better financial decisions,” And then he made the blockbuster announcement, “It’s a game changer.”

Alex Lintner, Experian president of consumer information services, concluded with two powerful and rather poetic

main points,

1.   “As the consumer’s bureau, our goal is to help empower consumers and to give better access to credit for more consumers, all while promoting fair lending…

2.   Through this project, we’ve found a new way to use consumer-permissioned data that allows lenders to make better decisions and helps consumers gain access to credit.”

With UltraFICO, Could There Be A Downside or a Dark Side?

The major issue with UltraFICO could be privacy, and it is an Ultra-critical issue.  In fact, your financial privacy and the

Fear not your credit scores.

Happy Halloween from Palm State Mortgage!

security of your financial information might become an important topic in an upcoming blog. UltraFICO is giving us strong reassurance that the new system is strong, safe and secure.  We really didn’t need the EEK in the title, since most scores will raise in the the new program.

You see, there are no reasons to be afraid, even if it is the Halloween season. And in case you are too busy carving pumpkins and making treats to read the Palm State Blog in coming days, we take this opportunity to wish you and your family a happy, healthy and safe Halloween.