. But experts suggest it may be some time before lenders really utilize the new tool.
"While traditional credit scores may have been sufficient as an indicator of creditworthiness in years past, the suddenness and intensity of the economic impact resulting from the coronavirus pandemic have proven that we need to look beyond the score to adequately assess a consumer's financial resiliency."
"It takes time for lenders to test and implement tools like this," financial expert John Ulzheimer, formerly of FICO and Equifax, tells CNBC Select. "Lenders will have to study and test the efficacy of the index and how it will impact their decisions and, of course, their bottom line." "If it's used, it can certainly impact how applicants are treated," Ulzheimer says. "Some declines may be turned into approvals, and vice versa."
FICO scores will mean nothing when we have millions upon millions of bankruptcies in the next couple of months.
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