FICO Score Unveiled For People Without AFICO Score
MINNEAPOLIS - (07/29/04) -- Fair Isaac has launched a new FICOscore designed specifically for the underserved market-those peoplewho don't have regular credit scores because they little or nocredit history with traditional financial institutions. "In thepast, many [financial institutions] simply turned down a loanapplication from someone who didn't have a credit score," said FI'sCraig Dillon. "But just because someone isn't in one of thenational [credit risk assessment programs] doesn't mean they'reautomatically a credit risk....If you aren't in the traditionallending system, perhaps because you are new to this country, or youare young, for example, it is very hard to break into it. This newscore can help." Fair Isaac estimates that about 160 million peoplewere already covered by the company's traditional FICO scores butthat approximately 50 million didn't have enough credit history togenerate a score for them. Using alternative consumer data-such aspayday loan performance-FI can now provide a credit score for about25 million of those "unbanked."