According to the Richmond Times Dispatch, three new financial tools developed by some of the same companies in charge of credit ratings are coming online to help improve credit scores. FICO's Ultra Score raises scores by importing data from your checking, banking, savings, and money-market accounts into your credit report. Experian’s new Boost option, imports on-time utilities and telecom payments. The new Wayfinder, from CreditXpert, allows borrowers to set a desired credit score while the software runs scenarios to achieve the goal.
All three of these tools could be practical if you find yourself in a score pinch. You simply need to ask your loan officer about them. But Fico’s Ultra and Experian’s Boost come with a crucial handicap for anyone seeking a home mortgage: Under current regulatory restrictions, the two biggest sources of mortgage money cannot accept the FICO scores they produce.
Fannie Mae and Freddie Mac both confirmed to me that at least for the time being, their underwriting systems don’t permit either UltraFICO or Boost. Both can be used for most other credit purposes using Experian credit reports, such as applying for credit cards or auto loans — but not for mortgages destined for purchase by Fannie or Freddie.
Wayfinder, by contrast, is designed for the mortgage market. The higher scores it leads to are acceptable because they reflect credit report changes that can be incorporated into scoring models that Fannie and Freddie have used for years. So if you’re seeking a mortgage and need a higher score, Wayfinder is worth mentioning to your loan officer.
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