Some Lenders Not Considering FICO Scores When Evaluating Applicants

January 14, 2016

The San Francisco-based lender SoFi is operating a little differently than its competitors. The company is not looking at FICO scores when evaluating applicants, according to Housing Wire.

“The idea of assigning a score based on your dealings with debt makes sense in theory, but in practice there are a few flaws,” SoFi wrote in its blog, highlighting that FICO scores don’t take into account things like savings, cash flow, future earnings, and the ability to pay non-credit bills like water and electric.

Towards the end of 2015, SoFi surpassed $4 billion in funded loans across mortgages, personal loans, and student loan refinancing.

Read more