While the traditional FICO credit scores ranging from 300 to 850 are well-known and widely used, FICO has introduced another valuable tool that can provide deeper insights into a borrower’s credit profile: the Resilience Index.

Scores Are Between 1-99

Unlike the standard FICO credit scores, which range from 300 to 850, the Resilience Index scores borrowers on a scale from 1 to 99. This alternative scoring system assesses a borrower’s ability to withstand economic challenges and financial stress.

1-44: More Resilient

Scores in the range of 1 to 44 indicate that a borrower is more resilient to economic downturns and financial stress. These individuals are less likely to experience credit issues during tough economic times.

45-59: Moderate

Scores in the 45 to 59 range suggest moderate resilience. Borrowers with scores in this range may face some financial vulnerability but are not highly sensitive to economic fluctuations.

60-69: Sensitive Risk

Scores in the 60 to 69 range indicate a higher level of sensitivity to economic risk. Borrowers in this category may experience credit challenges when economic conditions worsen.

70-99: Very Sensitive

Scores between 70 and 99 reflect a high level of sensitivity to economic risk. Borrowers in this range are at greater risk of facing credit issues during economic downturns.

The Resilience Index provides lenders with a more nuanced perspective on a borrower’s creditworthiness, particularly in uncertain economic times. It helps lenders identify borrowers who may be more likely to default on their debts when faced with financial challenges.

Keep in mind that while the Resilience Index can provide valuable insights, it is just one of many factors that lenders consider when making credit decisions. Lenders also assess factors like income, employment history, and debt-to-income ratio.

Understanding the Resilience Index and how it affects your credit profile can be helpful when seeking credit or loans. It highlights the importance of maintaining a strong financial foundation, even during periods of economic uncertainty, to improve your resilience and creditworthiness.