Want a Higher Credit Score? Soon Your Cash Could Help

The difficulty with this scenario is adoption by Fannie/Freddie and the Banks.

FICO "scores" are available now by CreditKarma and other resources but the problem is that lenders don't use that version of a score - know as a "VantageScore". Some info on this:

https://www.investopedia.com/articles/personal-finance/103015/are-credit-karma-scores-real-and-accurate.asp

I can't tell you how often I'm told "Oh, my score is high. It's in the 800's...." then I ask "Who provided that score?". It's often Discover, AMEX, CreditSesame or some other outfit. Once a mortgage credit report and it's mortgage focused FICO score is generated often the real score is in the mid to low 700's. I had one last week with a "oh, I'm in the low 700's" turn out to be in the low 600's. YOW!

For a very long time I've been strongly against what FICO scoring represents - an algorithm making a judgment call on the human experience - something that cannot be done with a computer. Unfortunately I'm in the minority on this, but welcome our new robot overlords none the less. We have no choice in the matter at this point in time.

My .02c
 
i don't see this new product being very useful.  from what i can tell, people will be able to choose which accounts they want to use to be calculated using the ultrafico.  this creates a very narrow view of one's credit history.  have an account that's been overdrawn 10 times in the past year?  just don't submit that account for consideration!  i can't imagine this product would be useful for anything other than secured credit?
 
I expect UltraFICO will be more of an alternative to doing nontraditional credit for thin file clients. If someone doesn't have tradelines but they do have a history of ACH payments to utilities, etc., those payments could be used to establish some level of willingness to repay as a proxy for the usual tradelines.
 
Soylent Green Is People said:
For a very long time I've been strongly against what FICO scoring represents - an algorithm making a judgment call on the human experience - something that cannot be done with a computer. Unfortunately I'm in the minority on this, but welcome our new robot overlords none the less. We have no choice in the matter at this point in time.
Click to expand...

Well, it's a remarkably effective predictor of human behavior so I don't think it's going anywhere.  On the positive side, I would say it's probably also led to more availability of credit than there would be otherwise. 

But I would have to agree with you that it can be taken to an extreme.  Just look at the "social credit" scoring system taking hold in China.  When authoritarians can use our data to control our lives, that's when it gets scary.
 
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