Extra! Extra! How the new credit scoring system will affect your score
Big news in the world of credit. A new factor will affect your score in the upcoming year which means your score could go up significantly if you do a good job at managing your checking and savings account. According to a CBS blog, 40% of applicants could see an uptick of 20 points or more in their credit score. If you are not yet established with credit, it could also mean you will have a potentially higher score if you have had either a checking, savings, or money market account for a while. Here are some important things to know about this new credit score, the UltraFICO.
- Things that will increase your score if you have had checking and saving accounts for several years, without bouncing checks, and who have at least $400 in savings.
- You have to opt in to the new system by giving the lender access to your personal account information.
- This is especially helpful for those who do not have much credit history (like you college student!)
- Although you can provide the information to FICO to be used in your UltraFICO score, you can’t force lenders to look at your UltraFICO score when determining your eligibility for a loan or credit card.
- It is being tested out “early next year” according to the blog.
This information may or may not affect you greatly now, but credit is an important thing to have. It is especially helpful to have if you are considering taking out a loan for a car or house, or if you are thinking of taking out private loans to cover for school. Keep in mind that it is up to lenders if they will use the new FICO score or choose to stick with the old one. With Powercat Financial, you can get customized education on your credit questions by requesting an appointment here or you can get basic credit information here. Powercat Financial wants you to be aware of your credit score and use your credit responsibly so you can achieve true financial wellness. If you have any question about credit or other borrowing options, please contact us at firstname.lastname@example.org or call us 785-532-2889. You’ll be glad you did!
Need more information on basic financial management? We have a pre-recorded workshop that could serve that need. Check it out!
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