Three new tools can help if your credit scores aren’t quite as high as you’d like them to be and need a boost.
These tools come from FICO, the company that develops your score; Experian, one of the national credit bureaus; and CreditXpert, a company whose products are used in the mortgage business.
FICO’s “Ultra” raises scores by importing data from your checking, banking, savings and money-market accounts into your credit report when calculating your score. If you have some savings, maintain your bank accounts over time, and avoid negative balances, it’s likely you’ll get a higher score. Seven out of 10 consumers who exhibit good banking and savings behavior should see increased scores using Ultra, according to FICO. (FICO scores range from 300 to 850; the lower the score, the greater the risk of future default.)
Experian’s “Boost” offers another score-enhancement approach. It uses your on-time utilities and cell phone payments and uses them in your score calculations, raising scores in the majority of cases. The lower your starting score, the bigger the improvement. According to Experian, three-quarters of consumers with scores below 680 saw an increase in their scores.
“Wayfinder” from CreditXpert is different. Working with their loan officer, borrowers select a target credit score they’d like to achieve to qualify for a loan or get the best interest rate and terms possible. The Wayfinder software then runs dozens of scenarios to get the borrower that score within a designated time period by taking steps to modify accounts in their credit reports. Say you have a 640 score but need at least a 680 to get an interest rate lower than you’ve been quoted. Your loan officer plugs your 680 target into the software and the program delivers specific steps you can take to achieve that score within days or weeks. Plans might call for a partial paydown of one or more accounts that are needlessly depressing your current score. But since you may not want to spend the money, Wayfinder offers alternatives that won’t cost as much but might take a month or more to complete. Score improvements average around 27 to 30 points, but have ranged as high as 179.
All three of these tools could be of practical use to you if you find yourself in a score pinch. You simply need to ask your loan officer about them.
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