Credit score you are about to get an adjustment that could help those with weaker credit.
Fair Isaac Corp., the company behind the widely used FICO score, announced Monday that it will begin testing a new type of credit score next year with credit reporting agency Experian and technology company Finicity .
The new UltraFICO score requires consumers to agree to share added personal information, such as data from their personal checking, savings, or money market accounts. The additional information is intended to provide a more detailed picture of how they use their money and is based on traditional information for credit scores, which are largely based on payment history.
It would potentially improve the credit score of many Americans, especially those with weak credit or a limited credit history. And it would provide a broader customer base for banks to which it lends.
Companies estimate that 79 million Americans have subprime credit scores, which stands at 680 or less. And 53 million don’t have enough data to generate a FICO score.
These scores are used to help assess the creditworthiness of credit cards, loans, and more.
The companies did not disclose how many lenders and others will participate in the lawsuit.
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