Consumers are always looking for new ways to improve their credit score. If you have recently filed for bankruptcy, you are likely looking for ways to rebuild your credit score. Having a good credit score helps you qualify for low interest rates on mortgages, car loans and other purchases you need financing for. We offer ways to re-establish your credit after bankruptcy on our website.
Traditionally, the recommended method is to exercise good consumer credit behavior, including paying bills on time every month, keeping credit card balances low and avoid maxing out your credit utilization ratio. FICO is now offering another way to improve your credit score.
FICO is releasing a new type of credit score, known as the UltraFICO Score. This new score was developed by FICO, in partnership with the credit reporting agency, Experian, and financial data company, Finicity. The UltraFICO score gives permission for positive financial data to be incorporated into the consumer’s FICO score. It is an “opt-in” program where consumers give permission to have information from their bank accounts and money-market accounts that show the consumer has demonstrated positive financial behavior, such as how long the consumer has had the account open, how frequently he or she uses the account, and how much he or she has saved.
The goal of the UltraFICO score is to help consumers who have lower scores in the upper 500s or lower 600s a chance to improve their score. This new credit score offers individuals who have recently gone through bankruptcy or foreclosure, another way to rebuild their credit quickly. FICO created this program as a way of showing credit agencies that these individuals are making good financial decisions by behavior that may not otherwise be reflected in their credit scores alone.
Credit scores have traditionally been based on borrowers’ payment histories. The UltraFICO factors in how consumers manage the cash in their checking, savings and money-market accounts.
The UltraFICO program is expected to launch in early 2019. It will be available to most lenders by mid-2019. It is always recommended that consumers regularly review their credit reports. Free credit report services exist that allow consumers to easily obtain a copy of their credit reports. Review the report carefully to ensure there are no mistakes or inconsistencies.
If you have questions on this topic or are struggling with debt, call our law firm to schedule a free consultation. Having debt makes you stay up at night. It stresses you out. It ruins relationships. I went through it. Boldly, I mustered up the courage to call a bankruptcy attorney and I pressed the restart button in 2008. And even though ten years has passed since I made that decision to restart my life, I never forgot what it did for me and how it helped me start over.
It even inspired me and my law firm to become the largest filers of bankruptcies in the country and in the top two in Florida- all from our offices in Orlando and Kissimmee. The Benenati Law Firm has eliminated nearly a billion dollars of debt for its bankruptcy clients, making the firm one of the top twenty filers of bankruptcy in the nation. Remember, we are local in your hometown. We make our hours convenient for our clients and offer free consultations on Saturdays (9:00 a.m. – 3:00 p.m.) along with our normal business hours throughout the week. Go to https://www.407bankrupt.com/ or call 407-777-7777 to set up a free private consultation and learn more information. Because Life Has a Restart Button.