What Is UltraFICO and How Do I Use It?

Introduction

• UltraFICO Score: A service allowing consumers to improve credit scores by showcasing money management skills.
• Useful for individuals with low scores or insufficient credit history (thin credit file).

How Does UltraFICO Work?

• Partnership: Developed by FICO, Experian, and Finicity.
• Purpose: Adds a dimension to credit risk assessment by including financial habits.
• Process:
  • Grant Finicity access to your financial accounts' data.
  • Relevant data includes account longevity, transaction frequency, cash on hand, and positive account balance history.
  • Combines bank data with Experian credit file to create an UltraFICO Score.

Who Benefits the Most?

• Individuals with credit scores in the upper 500s to lower 600s.
• Can help access better credit terms by demonstrating strong financial habits.
• Beneficial for:
  • New credit users with limited history.
  • Individuals recovering from financial distress (e.g., unemployment, divorce, medical bills).

How to Sign Up for UltraFICO

• Availability: Currently limited to a pilot group of lenders.
• Future Access: Will be more widely available post-pilot.
• Sign-Up Steps:
  • Visit FICO.com/UltraFICO.
  • Provide personal and professional information.
  • Opt-in when denied credit or unfavorable terms are offered.
  • Link bank accounts to generate an UltraFICO Score in real time.
  • Opt-out available at any time.

Other Ways to Boost Your Credit Score

• Experian Boost: Utilize utility and telecom payment history for instant score improvement.
• Credit Improvement Tips:
  • Pay bills on time.
  • Maintain low credit card balances.
  • Avoid unnecessary credit applications.
  • Become an authorized user on a family member's credit card.

Monitor Your Credit Regularly

• Importance of good credit beyond borrowing, affecting insurance rates, rental agreements, and employment.
• Experian's Credit Monitoring: Access FICO Score and receive real-time alerts for credit changes.

Conclusion

• Monitoring and improving credit is a continuous process to ensure favorable financial opportunities.
• UltraFICO provides an additional tool, especially for those with limited or recovering credit history.

About the Author: Ben Luthi, a financial writer with experience in planning, banking, and auto finance.

• Featured in major publications such as Time, USA Today, and NerdWallet.

Explore More: Topics include report advice, score advice, establishing and improving credit, and credit repair.