Are FICO scores becoming a thing of the past?

For years, credit score has been a major factor in determining loan qualification and interest rates. While there are a variety of credit scores out there, FICO credit score is used by most lenders to assess a borrower’s ability to repay. But for how long?

A growing number of lenders think that a person’s FICO score doesn’t tell the whole story, and can even be misleading under certain circumstances. It’s become clear that there are more accurate ways to measure financial wherewithal – no FICO score required.

Here is an interesting piece on this topic from San Francisco-based SoFi, a company that has chosen to not use FICO scores when evaluating applicants.

https://www.sofi.com/blog/is-fico-score-going-the-way-of-phone-booths/