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Numerous entities, such as credit bureaus, lenders, credit card issuers, and other financial institutions, are able to provide you with an actual FICO® ScoreTM. There are many versions of the FICO® Score, and they may have different uses, but theyre all real. When reviewing your score, you should be aware of the type of FICO® Score it is and whether it is the most appropriate version for your circumstances.
Hey credit enthusiasts! If you’ve ever thought that your credit score is a riddle wrapped in a mystery, you’re not the only one. The world of credit scores can be confusing, to say the least. But have no fear, my friend—I’m here to help you navigate the maze and determine your actual credit score.
First things first, let’s dispel a common myth:
There’s no such thing as a “true” credit score. That’s right, there’s no single, definitive number that represents your creditworthiness. Instead, there are multiple credit scores floating around, each calculated by different credit bureaus using different algorithms.
So, how do you find out your true credit score?
Well, it’s not as simple as asking Siri or Alexa. You’ll need to do a little digging. Here are a few ways to get your hands on your precious credit score:
1. Check Your Credit Card or Loan Statement:
Many major credit card companies and other lenders provide credit scores for their customers. It’s like a little bonus gift with your monthly statement. So, take a peek at your recent statements and see if your score is hiding there
2 Talk to a Nonprofit Counselor:
When it comes to your credit score, nonprofit credit counseling organizations can be a goldmine of information. They can give you a free credit score as well as assist you in understanding your credit report and pinpointing areas that need work.
3. Use a Credit Score Service:
There are a number of credit score services available online and through mobile apps. Some of these services are free, while others charge a monthly fee. These services typically provide you with your credit score from one or more credit bureaus, along with additional information about your credit report.
Now, let’s talk about the different credit scores:
The two main credit bureaus used by lenders are Equifax and TransUnion. Since every bureau uses a different credit scoring model, you’ll probably receive two separate credit scores from each agency. Furthermore, Experian, a third credit bureau, is utilized by certain lenders.
So, which credit score should you focus on?
The truth is, it doesn’t really matter. Lenders typically use a combination of credit scores from different bureaus when making lending decisions. So, it’s best to focus on improving your overall credit health rather than obsessing over a single score.
Here are a few tips for improving your credit score:
- Pay your bills on time, every time. This is the single most important factor in your credit score.
- Keep your credit card balances low. Aim to use no more than 30% of your available credit.
- Don’t apply for too much credit at once. Every time you apply for credit, a hard inquiry is placed on your credit report, which can lower your score.
- Become an authorized user on a credit card with good credit history. This can help you build your credit history without having to open a new account.
- Dispute any errors on your credit report. Mistakes happen, and it’s important to make sure your credit report is accurate.
Remember:
- There’s no such thing as a “true” credit score.
- You can find out your credit score from your credit card or loan statement, a nonprofit credit counselor, or a credit score service.
- Focus on improving your overall credit health rather than obsessing over a single score.
Now go forth and conquer the credit score maze!
P.S. If you have any questions about credit scores or credit reports, don’t hesitate to contact a credit counselor or financial advisor. They can help you understand your credit situation and make informed decisions about your finances.
P.P.S. Share this information with your friends and family! The more people who understand how credit scores work, the better equipped they’ll be to manage their finances responsibly.
Peace out!
How to Get Your FICO® Score
There are several ways to get your FICO® Scores, both for free and at a cost.
You can get your FICO® Score for free from hundreds of financial services companies, including banks, credit unions, credit card issuers and credit counselors that participate in the FICO® Score Open Access program and offer free scores to customers.
For instance, if you register with Experian for a free credit score, you will receive a copy of your credit report and a FICO® Score of 8. You will then be able to examine the underlying data (the credit report) that was used to calculate your score, in contrast to some services that only track and display your score. You can view your FICO® Score 8, FICO® Score 2, FICO® Auto Score 2, and FICO® Bankcard Score 2 by enrolling in the Experian CreditWorksSM Premium program.
FICO® also sells scores on myFICO. com and authorizes “FICO® Score retailers. These businesses may provide customers with free or paid access to their FICO® Scores, and occasionally they bundle extra goods or services with your score.
Checking with your bank or current credit card issuers is another option you may have. For instance, holders of American Express and Citi cards can receive a FICO® Bankcard Score 8 based on their Equifax and Experian credit reports, respectively.
What Is a FICO® Score?
A FICO® Score is a credit score thats developed and offered by FICO®. The company, originally named Fair Isaac Corporation, released its first credit bureau-based credit score in the 1980s. Since then, FICO® has developed several credit score varieties and issued updated versions of its scores with revised computation methods.
FICO®, for instance, provides base FICO® Scores, including FICO® Scores 8, 9, and 10, which is the most recent. These are general-purpose scores made to be used for a variety of credit products by different kinds of lenders. Additionally, FICO® releases industry-specific credit scores, such as the FICO® Bankcard Score for credit card issuers and the FICO® Auto Score for auto lenders.
The base scores range from 300 to 850, while industry-specific scores range from 250 to 900. The goal of both score types is to forecast the same thing: the probability that a person will miss a payment by 90 days in a 24-month period. FICO® does this by analyzing the information within your consumer credit reports from either Experian, TransUnion or Equifax.
FICO® builds different scoring models to align with how each bureau stores your information. Previous iterations of FICO® Scores, such as the models that are still widely employed in mortgage underwriting, even bore distinct titles depending on the bureau:
- Experian/Fair Isaac Risk Model v2 (FICO® Score 2)
- Equifax Beacon 5.0 (FICO® Score 5)
- TransUnion FICO® Risk Score 04 (FICO® Score 4)
All three bureaus have been using the same version number for new base models since the release of FICO® Score 8, but the models are still customized with the bureau in mind. Another credit scoring business, VantageScore®, scores credit reports from Experian, Equifax, and TransUnion using a tri-bureau model.
Although VantageScore and FICO® are the most popular credit scores, there are other credit scoring providers as well. For instance, big lenders might assess prospective and existing clients using specially constructed credit scores, and businesses might make their credit scores available to the public for reference. While educational scores may be a reliable indicator of your creditworthiness, they shouldn’t be used as a basis for deciding whether to apply for credit because they can differ greatly from the scores that lenders use.
How to Check Your Credit Score for FREE
How do I check my credit score?
To check your credit score, I recommend visiting CreditKarma.com, which allows you to see your score for free—actually free—no free trial, and no credit card required. (They make their money by selling credit cards. Yes, kind of ironic.) 8. Repayment Source Lenders want to ensure that your ability to repay the loan will stay consistent.
What is a true FICO score?
A true FICO score ranges between 300–850 and gets calculated using only information in a consumer’s credit report maintained by the three main credit bureaus— Experian™, Equifax ® and TransUnion ®. To receive a FICO Score, you must have a credit account at least 6 months old and activity during the past 6 months.
Do credit reports contain credit scores?
Credit reports from the major credit bureaus usually do not contain credit scores. However, you can obtain your score from them for a fee. Some financial institutions will give your credit score on your statement or through their online portals. Some nonprofit credit counselors provide free credit scores and help you review them.