How Will the New FICO Resilience Index Affect Your Credit?

FICO Resillience Index

In 2020, FICO developed a new tool for lenders to help “identify those consumers across FICO® Scores bands that represent higher resilience during an unexpected economic disruption.” This tool is called the The FICO® Resilience Index 

This index scales from 1-99 with lower numbers indicating those who are most able to navigate through an economic shift such as the pandemic, economic disruption, and low interest rates.

Resilient borrowers generally have these characteristics:

  • More experience managing credit
  • Lower total revolving balances
  • Fewer active accounts
  • Fewer credit inquiries in the last year

If you have a FICO score in the 580 – 669 range, but your FICO Resilience Index score is low, lenders may see you as a better credit risk than those with higher FICO but inconsistent work history and no savings.

For more information check out this article in Vibrant Living.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. 


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