Raynham MA Real Estate, Taunton MA Real Estate, Stoughton MA Real Estate, Easton MA Real Estate


ultrafico

Chances are good you know all about  your credit score. Also called a FICO score, this magical number is a major factor in many financial transactions, including qualifying for a mortgage and renting apartments.

Yet here's some info that may have slipped past your news feed: In October 2018, the Fair Isaac Corp. (the creators of FICO) announced a whole new scoring method called the UltraFICO. Currently in beta testing with a small, undisclosed group of lenders, this new scoring method is expected to be more widely released in April 2019.

So, what is this exciting new scoring model? Will it help? Will it hurt? Here’s what you need to know.

FICO vs. UltraFICO: What's the difference?

Your traditional FICO score looks only at the money you borrow from lenders (e.g., through credit cards, and car and college loans). FICO scores generally do not factor in any traditional bank accounts, be it checking or savings.

The UltraFICO, in contrast, does look at your banking behavior, adding it to the mix along with more traditional metrics like your credit card payments. UltraFICO examines your checking, savings, and/or money market accounts (which are similar to savings accounts but offer a higher interest rate in exchange for maintaining a higher balance), and reports on details such as the following:

  • Your account history: How long have you had these accounts? The longer the better.
  • Your account balance: According to the UltraFICO website, it's looking for “a healthy average balance.” It doesn't spell out exactly what that means, but it suggests that consumers with a balance of at least $400 over a three-month period should fare well with this new scoring system.
  • Your account activity: Do you regularly pay your bills through your bank account? If you don't, you may want to start, since that will be considered, too, particularly how often you pay your recurring bills (e.g., cellphone and utility bills), according to Nathan Danus, director of housing at DebtHelper.com in West Palm Beach, FL.

If you show “responsible financial behavior” in these accounts, this could improve your credit score. If you have imperfect credit or no credit but you have a positive banking history, your score may see a nice boost.


“If you have even a few hundred dollars in your account, and if you haven’t bounced checks or gone under the minimum balances, that will now count in your favor,” says Howard Dvorkin, a certified public accountant in Fort Lauderdale, FL.

Will UltraFICO replace FICO?

No. “Most banks and lenders are going to use it initially as a backup scoring model,” says Danus.

The way it will likely work, according to Danus, is that when you apply for a loan or mortgage, if your regular FICO score isn’t high enough to qualify you, the lender may ask for your UltraFICO.

The UltraFICO is also voluntary. You don’t have to volunteer your banking information with a prospective lender for review unless you want to. This is a major difference from your FICO score, which is calculated whether you like it or not.

Who will benefit from UltraFICO scores

Building a credit history takes time. If you have little or no credit history but do have a banking history, you may be able to generate an UltraFICO score even if you don’t have enough of a credit history to generate a FICO score.

As such, the UltraFICO has a lot of potential, especially for consumers with borderline credit (meaning you’re at the cutoff between having poor and fair credit or between having fair and good credit) or who have a limited credit history. FICO estimates that over 15 million consumers who don’t have a FICO score could receive an UltraFICO score.

If you already have a good FICO score, then you probably don’t need to worry about the UltraFICO. Whether the UltraFICO will help you depends on your banking history.

“If the consumer finds themselves among the 60% of Americans who have very little to no savings funds, the UltraFICO will likely not help build their credit rating,” says Todd Christensen, education manager at Money Fit by DRS in Boise, ID.

Consumers who don’t have a recent pattern of positive savings may not want to opt in to the UltraFICO, according to Christensen.

How to prepare

The UltraFICO is currently in beta testing. Ultimately whether the program is expanded depends on how well it does for consumers as well as lenders, according to Danus.

If everything goes well, consumers may soon see this option available with lenders in April. And there's a way to prepare: Start building up your savings now, so that if you have the chance to opt in, you’ll have a positive banking history for lenders to review.

Ultimately, though, don’t let the UltraFICO distract you from taking steps to improve your FICO credit score. It’s still important to make on-time payments to lenders, to pay down your credit balances, and to make payments arrangements if you have any delinquent accounts.



32 Sandpiper Lane, Taunton, MA 02718

East Taunton

Single-Family

$379,900
Price

7
Rooms
3
Beds
2
Baths
This meticulously-maintained home is located in E. Taunton's premier, sought-after neighborhood minutes to all highway access routes. Some of the many features of this wonderful home include a large kitchen w/granite counters/tile backsplash/stainless steel appliances & dining area leading to a private rear deck, a spacious living room w/new hardwood flooring, three bedrooms & a full bath w/new walk-in tiled shower all on the first level AND a finished lower level w/full windows/atrium door that includes a large family room, game room, both w/new wood laminate flooring, & additional full bath, a perfect set-up for the extended family member! Some additional features include a maintenance-free exterior w/vinyl siding, a large rear yard w/privacy fence, shed, & patio w/pergola situated on a beautiful lot w/mature plantings. Enjoy town water, town sewer, natural gas heat, central air-conditioning, and so much more!
Open House
No scheduled Open Houses

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Welcome to Steeple Chase Preserve, one of Raynham's most desirable neighborhoods. Step inside this modern home located minutes to all major access routes (I-495, Routes 24, 44, & 3) & a short ride to the area commuter rail to Boston. This home offers a spacious floor concept with a large family room w/gas fireplace open to an attractive kitchen w/new granite counters, stainless steel appliances, center island & breakfast area, formal dining & living rooms with French doors, hardwood & tile flooring, recessed lighting, four generous-sized bedrooms to include a master suite w/large bath w/double vanity, whirlpool tub & walk in shower. Additional features include an unfinished basement (partially studded) w/full walk-out slider, full windows & gas fireplace. Enjoy two-zone hydro air heat, two-zone central air conditioning, town water & natural gas heat, all situated on an attractive manicured lot w/full irrigation. First viewing at open house on Saturday, 3/23 from 12:30 to 2 p.m.

More Info on this Property | New Listing Alerts

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341 Finch Road, Raynham, MA 02767

Judson

Single-Family

$539,900
Price

8
Rooms
4
Beds
2/1
Full/Half Baths
Welcome to Steeple Chase Preserve, one of Raynham's most desirable neighborhoods. Step inside this modern home located minutes to all major access routes (I-495, Routes 24, 44, & 3) & a short ride to the area commuter rail to Boston. This home offers a spacious floor concept with a cathedral family room w/gas fireplace open to an attractive kitchen w/new granite counters, stainless steel appliances, center island & breakfast area, formal dining & living rooms with French doors, hardwood & tile flooring, recessed lighting, four generous-sized bedrooms to include a master suite w/large bath w/double vanity, whirlpool tub & walk in shower. Additional features include an unfinished basement (partially studded) w/full walk-out slider, full windows & gas fireplace. Enjoy two-zone hydro air heat, two-zone central air conditioning, town water & natural gas heat, all situated on an attractive manicured lot w/full irrigation. First viewing at open house on Saturday, 3/23 from 12:30 to 2 p.m.
Open House
Saturday
March 23 at 12:30 PM to 2:00 PM
JUST LISTED! COME ON DOWN AND SEE THIS AWESOME HOME!
Cannot make the Open Houses?
Location: 341 Finch Road, Raynham, MA 02767    Get Directions

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