FICO Credit Scores Just Changed Forever Starting May 27th - Everyone Impacted!

Added: 2026-05-25

[00:00:00]Breaking news everyone. FICO just launched a new scoring model and this is going to change credit scores forever. A Fortune 500 company just approved using this scoring model and they're going to launch using it on May 27th, 2026 and more lenders are going to follow. So, if you're applying for credit cards, car loans or financing, you need to understand these three changes immediately. And the third biggest change is the most sinister. It is something you need to understand because you can be denied even if you have good credit if you don't understand this factor and I'm going to give you some steps that you need to take so you don't get denied for credit. Now, the first major change. Now, this new model is called FICO Ultra and it was just launched on May 20th and it uses Plaid now to track your real-time cash flow, not just your information on your credit report. Now, FICO combined with Plaid is going to show how much you get paid, how consistently you get paid and if you're overdrawing on your bank accounts. All of this is to actually track the consistency of your pay and your cash flow. Now, the reason why this is a big change because on your credit report, they don't see the consistency of your pay. It's what you put on your application and how you have handled your payments in the past on your credit report and now this is really getting into your private information on how you handle your finances. Now, the second major change, this is going to verify your income and your employment in real time. So, what it's going to check the amounts of how much you're getting paid and the source [clears throat] of where you're getting paid from and also going to track did you lie on your credit applications about your employment. Now, this is going to catch people who write down on their application that they're currently employed, but you might have been laid off. So, right now as it stand, if your employer that is there is reporting on your credit report, you can say that you're still employed there and they will not know the difference as long as you're paying your accounts on time in many situations. But now, they'll be able to see by the deposits are you still employed and did you lie about the length of employment? So, if you put on the application that you've been employed there for a year and they don't see those consistent payments from that source for a year, then they understand that you have misrepresented your employment history on your application.

[00:02:48]And the third biggest change is the most sinister of them all. They're trying to track your hidden debt obligations. Now, understand there are certain debts that you have that do not report to your credit report. Some buy now pay later accounts and also some debt obligations that you might have like child support that's not being reported or showing up.

[00:03:10]And even worse, if you're a person that may have even diabetes and you're paying high amounts for your monthly medication, this is going to show up as a debt obligation that does not show up on your credit report. So, what is really trying to catch is how much do you actually spend? And even things like groceries right now being really high can now be looked as a debt obligation that you can afford this amount of credit or financing that can even get good credit score people denied for credit. And now you have Fortune 500 companies like T-Mobile that's going to use the scoring model this week for their approvals. And they approve over million applications a month with over 130 million customers nationwide. And you're going to have more Fortune 500 companies to follow and banks and lenders to adopt this model. So, here's four steps that you need to take right now to protect yourself when you go to apply for credit. Number one, make sure you do not overdraft on your bank accounts because now you're going to have lenders looking for that consistency and payment history. And if you constantly have overdrafts in your bank account, it's going to look risky even if you have good credit. So, this is going to be a big change because now they're getting into your personal financial details.

[00:04:42]Step two, make sure that you're maintaining your credit scores because even though they're looking at cash flow, credit score is still going to matter. So, you want to make sure any negative information you're disputing off of your credit report to make sure you keep your credit scores high. Now, with my Elite Credit System users like Shawn went from a 612 credit score to a 770 credit score in a matter of 6 months and now he's at a 803 credit score. So, it doesn't take you long to improve your credit scores and if you need my help, the link is in the description of the video and in a pinned comment section.

[00:05:17]But moving forward, now cash flow and your credit scores together is going to matter for your approval. Step three, watch out for your hidden debt obligations. Now, if you have debts, you might need to have withdrawals going out of another bank account because with Plaid, you do have to choose those accounts to connect for it to read. So, you might want to split up your debts versus your income coming in and try to funnel that out to another account to split those payments up because unfortunately now they're going to really look at those details. Even what can count against you is your grocery bill, uh how much you spend in gas. So you want to make sure that you need to have separate accounts and watch those buy now, pay later accounts because those that don't report on your credit report right now with some companies, those obligations will show up. And step number four, watch what you're putting on your applications for credit and lending because now with Plaid connecting to your account that you are using, it's going to be able to see any inconsistencies that you put for income, job history, and amounts of pay on the application. Additionally, you always notice on these applications they'll ask you about how much rent that you pay.

[00:06:50]That is something that you could, if it's not showing up on your credit report, fudge the numbers on how much is your rent every month. But now if it's coming out of that account, they will be able to see that. So you want to be careful because now you can get denied for any inconsistency and they're going to use this AI software to examine what the details is coming out of your account compared to the application. So you want to be aware if you're asked to use Plaid to connect with this FICO scoring model, what they're trying to find out and where they're trying to catch you to get denied. And pretty soon you're going to see more lenders adopting this new scoring model and you need to watch out. So, hopefully this information was helpful. If you have questions or comments, leave it in a comment section. More detailed questions for me, you can go to my website, and all your questions go directly to my cell phone. I hope to see you guys in the next video. Stay tuned.