FICO Will Use a New Credit Score That Includes Your Bill Payments

FICO is adding a new model for calculating credit scores.

Last week, they announced a pilot program, rolling out over the next few months.

It’s meant to help people with bad or nonexistent credit by including bill payment history.

The new program includes a person’s utility payment historyeverything from your cell phone bill to your cable bill.

The new score will have a range between 300-850.

But it’s not meant to replace the traditional FICO score.

It’s an alternative score it’s possible for you to use to more easily obtain credit.

But not everyone agrees that it’s a useful move.

The fear is that the program will actually result in more failing scores than positives ones.

To read more about the change, head to the links below.

FICO Announces New Credit Score Based on Alternative Data| Wall Street Journal viaConsumerist

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