We all know how important credit scores can be when applying for a mortgage. You can’t flip on the TV without being pummeled by advertisements for credit monitoring programs and websites. With all of these companies promoting the value of a good credit score, it’s easy to get discouraged if your credit happens to be less than stellar.
But, don’t fret, there is some good news on the horizon! Introducing the UltraFICO Score.
According to a recent Wall Street Journal report, Fair Isaac Corp., the creators of the FICO score have plans to introduce the new UltraFICO score in 2019. So, what does that mean for you?
The new credit score, per the WSJ, “is designed to boost the number of approvals for credit cards, personal loans and other debt by taking into account a borrower’s history of cash transactions, which could indicate how likely they are to repay.”
Simpler terms: the UltraFICO Score = More people getting approved for loans. Wonderful!
“I love the idea, it’s helping millions of people qualify for a home loan,” says Luke Smith, REX Market Manager. “Any time you can raise your credit score, it’s going to help you secure a loan and lower your interest rate.”
While the original FICO score isn’t going away, the UltraFICO will provide lenders a second option (or recalculation) on would-be borrower’s credit scores, who under normal circumstances would fall short.
As the UltraFICO rolls out in 2019, it is important for potential borrowers to consult a mortgage professional to learn how the change impacts them on a personalized basis. The great folks at REX Home Loans are a great place to start!