Answer: FICO Score XD.

How does the new score work (from Fiscal Times)?

“FICO, the analytics company that provides the credit scores used by lenders, announced that it will broaden its offering of an alternative credit score, potentially helping those who otherwise have been shut out of the debt markets. The new rating, called FICO Score XD, uses public records as well as a consumer’s phone, cable and utility payment history to devise a number on the same 300-850 scale used for the standard FICO scores.”

Who will it help (from Fair Isaac Press Release)?

“During the FICO Score XD pilot, lenders found that as many as half of credit applicants had scores of at least 620, which is a common threshold for loan underwriting,” said Wehmann. “FICO Score XD enables lenders to recognize these creditworthy applicants and extend credit safely and responsibly. This can translate into mainstream financial opportunity for millions more Americans.”

What type of lending will be available for those with a FICO Score XD (from Press Release)?

“Today at FICO World 2016, analytics software firm FICO (NYSE: FICO) announced the general availability of FICO^® Score XD for bankcards, enabling lenders to safely and responsibly offer credit to millions of consumers who do not have standard FICO^®Scores.”

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.