NORTH CAROLINA -- Coming in 2019, those applying for loans won't have to rely on just their FICO score.
- The new "UltraFICO score" will allow bank account activity to play a factor in your credit score
- Experts believe this targets younger generations, who are saving their money, but haven't yet built up enough credit history
- Those who receive these loans from a good UltraFICO score will still need to be smart with their money
The new "UltraFICO score" will allow bank account activity to play a factor in your credit score.
Experts believe this targets younger generations, who are saving their money, but haven't yet built up enough credit history.
Financial planner Brian Orol with Strategic Wealth Management in Raleigh says this will help about 30 million more Americans get approved for loans, whereas with simply a FICO score, may be told they have bad credit.
"If people have access to credit and they use it wisely, whatever the monthly bill is, if they pay it on time, then it helps the economy and it also helps people get more engaged in society and they contribute more," Orol said.
Financial experts say it's important to remember, despite getting this opportunity, those who receive these loans from a good UltraFICO score will still need to be smart with their money. If not, they could risk future ineligibility, and a lower credit score.