2019 ushers in new rules for scoring your credit
WINTER PARK, Fla. (FOX 35 WOFL) - With the new year comes new rules for your credit score.
This new approach to scoring credit could open up new avenues for consumers looking to buy a house or a new car, but struggle with having a low credit score or no score at all.
The change comes with the new 'Ultra-FICO,' which aims to help consumers establish credit based on banking and savings habits instead of credit card and loans.
George Janas, the President of Consumer Debt Counselors of Winter Park, explains how you will have to give Ultra FICO access to your banking information as part of the program.
"So, a lot of what they're doing is importing banking information and some of that banking information is going to start giving more information that may assist in showing good spending and management habits for people who might not otherwise have a good score," Janas says.
The new scoring system will boost the borrowing power of about 22 million consumers who either have no score or fall below 600, which is too low for most lenders.
The Ultra FICO score is being tested right now and will expand this summer.