Fair Issac Corp., creator of the widely used FICO credit score, plans to roll out a new scoring system in early 2019 that factors in how consumers manage the cash in their checking, savings and money-market accounts. It is among the biggest shifts ever for credit-reporting and the FICO scoring system, the bedrock of most consumer-lending decisions in the U.S. since the 1990s.

The UltraFICO Score, as it’s called, isn’t meant to weed out applicants. Rather, it is designed to boost the number of approvals for credit cards, personal loans and other debt by taking into account a borrower’s history of cash transactions, which could indicate how likely they are to repay.

The new score, in the works for years, is FICO’s latest answer to lenders who have been clamoring for a way to boost loan approvals.”

Well, clearly lenders are still nervous about lending since excess reserves stored at The Federal Reserve are relatively high.


And 1-4 unit mortgage debt outstanding never recovered to the growth rate of the 2000s.


Residential loan growth YoY has been below 5% since 2010. A far cry from the over 15% growth rate in 2007.


The problem with UltraFICO is that it may be counterproductive to bank capital requirements by making borrowers seem less risky than the actually are.

With The Federal Reserve FINALLY getting around to raising interest rates after ten years in the monetary wilderness, lenders are seeking ways to accomodate marginal borrowers.