Skip to main content

FICO changing how it calculates credit scores

Credit scores, which for decades have been based mostly on borrowers’ payment histories, are now going to factor in how consumers manage cash in checking, savings and money-market accounts.

FICO plans to roll out a new scoring system in early 2019, and it’s among the biggest shifts for credit reporting and the FICO scoring system, the basis of most consumer-lending decisions since the 1990s, according to The Wall Street Journal.

Borrowers can contest what they think is inaccurate information in their credit histories but otherwise have little control over their scores. The so-called UltraFICO score will function as an appeal of sorts, likely boosting many applicants with less-than-ideal records. If a traditional FICO score doesn’t qualify an applicant for a loan, the lender can offer to recalculate the score to reflect banking activity.

If applicants have several hundred dollars in accounts they’ve had for a while, and transact frequently without overdrawing, they’re likely to see their scores rise. Applicants will be able to choose which accounts they want considered when the score is recalculated.

FICO said about 7 million applicants who have low credit scores as a result of borrowing histories would likely see their scores improve under the new system. Separately, some 26 million subprime borrowers could end up with higher credit scores, FICO said, with nearly 4 million seeing an increase of at least 20 points.



NMMA: Proposed Speed Rule an ‘Existential Threat’ to Industry

The association is calling on every marine brand, employee and boat owner to file public comment by Oct. 31 over a sweeping regulation to protect North Atlantic right whales.


Axopar and Nimbus Renew Agreement

The boatbuilders have entered an agreement whereby Nimbus Group will retain exclusive rights to sell Axopar boats on the Swedish market.


Hurricane Ian Leaves Devastation in Florida

The storm left a wide swath of destruction, heavily impacting marine interests from Tampa Bay to Marco Island.


Email Is Your Ticket to Holiday Sales

Developing an effective email campaign can bolster sales and help fill winter coffers at your dealership.


NMRA Presents Annual Awards

Edson CEO Will Keene and ComMar Sales president Tim Conroy were recognized for their contributions to the marine industry.


DEALERS: Are Interest Rates Impacting Demand?

This month’s Pulse Report survey asks dealers whether interest rate increases are causing a downturn in boat sales. Take the survey here.


EPropulsion, Mack Boring Partner with Crest

Pontoon builder Crest will use an ePropulsion Navy 3.0 Evo electric outboard motor and an E175 battery for its 2023 Current model.


Beneteau Reports Significant H122 Growth

The company reported that its revenue grew 8.6 percent and income increased by 30 percent during the first half of 2022.