President Obama signed an Executive Order today intended to improve the security of consumer financial transactions. In related remarks, he recognized the importance of consumers checking their FICO Scores regularly. Not only can doing so help consumers manage their financial health, it can help people protect themselves from financial crime.
The President explained that “a sudden drop in your credit rating is one of the clearest signs that you’ve been hit by fraud.”
With FICO CEO Will Lansing in attendance, President Obama went on to praise Citi as the latest bank to join FICO Score Open Access, noting that “Citi is joining other financial institutions in making free FICO Scores available to customers.”
FICO® Score Open Access was launched in November 2013 with participating financial institutions offering free FICO Scores to eight million eligible credit card account holders. By early 2015, that number will exceed 60 million. And the program now reaches far beyond credit card accounts to include eligible deposit accounts, auto loans and student loans.
FICO® Score Open Access allows financial institutions to offer consumers the same credit scores the financial institutions are using to manage their accounts. The program also provides educational information to help consumers manage their financial health. Analysis of some data from the first year of the program indicates that consumers who take advantage of the program tend to have lower delinquency rates than similar consumers who do not.
As we approach the first anniversary of FICO® Score Open Access, the program has far exceeded our expectations and is providing valuable information to millions of consumers. Ultimately, this is good for everyone with a stake in the consumer credit system. And we’re just getting started, with additional partners signing on and helping us make an even bigger impact on consumer financial health.