FICO’s UltraFICO – FICO has made its upgraded UltraFICO Score available to lenders, bringing real-time cashflow information—shared with consumer permission—into credit decisions via Plaid. FICO says many non-prime applicants with consistent account balances could see higher scor
Prices are rising again, and for many Americans the pressure doesn’t stop at the checkout. It can follow people straight into their credit applications—right where low consumer sentiment and tight budgets leave households especially exposed.
For those seeking a better shot at approval. FICO has now turned on a new upgrade to its UltraFICO Score: a “new generation” of the model that folds in real-time cashflow data. The update. first announced last fall. is designed to help lenders judge creditworthiness with a fuller picture of what applicants’ money is actually doing—money moving in and out of their accounts like checking and savings—rather than relying only on traditional credit bureau histories.
The upgraded model is live and available to lenders now. FICO’s leadership says it could improve credit decisions, and in most cases help consumers see a boost to their credit scores. But the same machinery that can lift some applicants can also work against others.
The new UltraFICO Score looks at transactions going in and out of an applicant’s bank accounts. Plaid’s infrastructure is used to connect a consumer’s bank accounts with certain financial apps and platforms. and in this case. with a lender’s portal. The key condition is consent: consumers are not automatically opted in. They have to agree to share their information through Plaid. If they opt not to share, the lender can’t calculate an UltraFICO Score.
For applicants in steady financial motion, that cashflow window may help lenders extend credit offers—or approve credit—more confidently. For people whose finances are under stress, the score could also ding them. FICO points to examples like being between jobs, when cashflow difficulties show up in the flow of transactions.
The difference from the earlier UltraFICO Score centers on how the model is built to use cashflow data alongside credit bureau data. Julie May. vice president and general manager of B2B Scores at FICO. described the original UltraFICO Score that debuted in 2018 as “trailblazing.” But she said the new model is different because “how we built this with Plaid is different.” In her description. the scoring model is built to utilize credit bureau data and cashflow data to make an assessment of risk. and it’s “bureau-agnostic.” That means that “irrespective of which credit bureau a lender is using to make decisions. you can also pull an UltraFICO score.”.
There is also a clear shift in who participates. Previously, only Experian worked in conjunction with the UltraFICO model. Now, Experian, Equifax, and TransUnion are all in the mix. May said that almost 80% of non-prime credit applicants with a history of positive account balances “will see higher scores.”.
She also framed the model as a tool aimed at specific groups that often struggle under traditional scoring—especially “the thin-file population. ” individuals who are new to credit. or not active credit users. In other words, cashflow data is being used to fill in where limited credit history can make decisions harder.
From Plaid. Adam Yoxtheimer. head of partnerships at Plaid. called it “very exciting to be able to go to market with FICO. ” and he pointed to the inclusion of cashflow data into credit scoring models—something that had once been treated as controversial. Yoxtheimer said that ten years ago. people would have discussed cashflow as “an ‘alternative’ data source. ” something that might eventually become mainstream. His view now is that this upgrade lands in a careful middle ground: “This new model is far enough afield to be considered innovative. but not too far afield to be scary and unadoptable.”.
The human stakes are straightforward even if the mechanics are technical: whether an applicant’s recent money-in and money-out patterns strengthen their case—or weaken it—could change the outcome of credit decisions. And because consumers must actively consent to share their data through Plaid. the upgrade introduces a new kind of choice at the moment of applying.
In the sequence of facts here. the direction is hard to miss: cashflow data is entering scoring with permission. not automatically; lenders can calculate the UltraFICO Score only when consumers share the information; and the intended beneficiaries are clearly spelled out as non-prime applicants with positive account balances. Still. the model’s downside is just as explicit—those experiencing cashflow difficulties. such as being between jobs. may see the penalty show up in their scores.
FICO UltraFICO Score cashflow data Plaid credit scores consumer consent Experian Equifax TransUnion lending decisions non-prime credit