You probably know more than you want to know about your own credit score - if you’re like most people buying a home for sale in Lakewood or Long Beach, you know that it’s incredibly important in getting approved for a mortgage loan.
But there’s an all-new credit score in the works called the UltraFICO - and here’s what you need to know.
The New UltraFICO Score
The Fair Isaac Corporation, the company that gives out FICO scores, is testing a whole new method that some lenders are already using. It’s called the UltraFICO, and it works like this:
It takes a look at your banking behavior, including how long you’ve had accounts and whether you’ve ever overdrafted
Your account balances count
The types of activity you conduct with your bank accounts matter, such as whether you automatically pay bills
The UltraFICO is supposed to measure your “responsible banking behavior,” and it can improve your credit score. However, if you’ve got a few mistakes, you may want to ask lenders not to look at it. Really, it’s to help people who have imperfect credit (or no credit at all).
The UltraFICO isn’t replacing the FICO - at least not yet. Most lenders are using it as a backup scoring model at this point (to help those buyers who have imperfect or no credit qualify). It’s voluntary, unlike your FICO; you’re given a FICO score whether you want one or not.
Are You Selling a Home in Lakewood or Long Beach?
If you’re selling a home in Lakewood or Long Beach, we can help. Call us at 562-882-1581 to find out how we’ll market your house to all the right buyers so you can sell it quickly and at the right price.
You can also explore our real estate listings here: