FICO Introduces More Inclusive Score
Fair Issac Corporation, creator of the FICO score, announced the creation of an alternative credit score. The new credit score is intended to expand credit to riskier consumers with limited or poor credit history. Although, still in the testing phase, the credit score should be introduced into market later this year and is expected to help more than 50 million consumers access credit markets.
FICO’s traditional score incorporates loan payments, liens, judgments, collections and employment history. The new score will include added factors such as utilities and cable payments as well as moving history to provide lenders with supplementary information to evaluate creditworthiness. With stricter underwriting and regulatory requirements, the credit score provides a work around for both lenders and consumers seeking to expand credit access.