Wednesday, November 21, 2018

"it is an opt-in program"

From the Mass Consumer Affairs blog we find out about a new credit score becoming available in 2019.

"Your credit score has long been determined by a standard measurement known as FICO. Your score is determined using the information in your credit report, such as your payment history and how much debt you owe, and creditors and lenders, along with insurance firms and landlords, use your score to determine your credit-worthiness. The lower your score, the higher interest rates you will pay on your loans and credit cards, if you are approved for them at all. 
Starting in 2019, however, a new opt-in credit score system, UltraFICO, is being implemented and consumers could see a boost to their credit scores. 
Here are the important differences you should know: the original FICO score takes into account debt levels, new credit, payment history, length of credit history, credit mix, and several other factors. UltraFICO will also focus on cash behaviors, such as how much you keep in your checking, savings, and money market accounts, and how you use this money; how long you have maintained a bank account; and whether you’ve had negative balances."
Continue reading the article online

Other resources on this topic

From Consumer Reports

From Lifehacker

From the FICO site

It is a good thing that this new scoring is an opt in program which means you have to sign up for it. I would really think about it before doing so. Given the history of data breeches, you would effectively be giving the credit agencies, more of your data. What could go wrong with that?

"it is an opt-in program"
"it is an opt-in program"

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