FICO® Scores are used by 90% of top lenders. There are many different “credit scores” available to consumers, so it’s critical to know which one you are receiving and how much lenders use it—or don’t use it at all. It’s also more crucial than ever to be aware of your FICO® Scores.
Unlocking the Mystery of Your Credit Score
Few things are as influential in the world of personal finance as your credit score. Your eligibility for loans, interest rates, and even job opportunities can be determined by this elusive number. Although there are a number of credit scoring models available, the FICO%C2%AE%20Score is the most important one, being used by 90% of the best lenders to determine credit decisions.
But navigating the world of FICO® Scores can be confusing especially when it comes to specific versions like FICO® Score 2 4, and 5. These scores, often referred to as “legacy” or “mortgage” scores, play a crucial role in securing home loans.
Understanding FICO® Score 2, 4, and 5
Before diving into how to access these scores, let’s first understand what sets them apart. These versions were developed specifically for mortgage lending and are based on data from Experian, Equifax, and TransUnion credit bureaus.
- FICO® Score 2: This score, also known as the Experian/Fair Isaac Risk Model v2, was introduced in 1989 and remains widely used by mortgage lenders. It ranges from 300 to 850 and considers factors like payment history, amounts owed, length of credit history, new credit, and credit mix.
- FICO® Score 4: Also known as the Equifax Beacon 5.0, this score was released in 1995 and is another popular choice for mortgage lenders. It shares the same scoring range and factors as FICO® Score 2.
- FICO® Score 5: This score, officially called the TransUnion FICO® Risk Score 04, debuted in 1996 and is still used by some mortgage lenders. It also follows the same scoring range and factors as its counterparts.
Where to Find Your FICO® Score 2, 4, and 5
Now, the million-dollar question: how do you access these elusive scores? Here are your options:
1. Your Mortgage Lender: As part of the loan application process, many mortgage lenders grant access to your FICO® Scores 2, 4, and 5. This is a convenient way to obtain these scores without additional effort.
2. Credit Reporting Agencies: Experian, Equifax, and TransUnion are the three credit reporting agencies from whom you can obtain your FICO® Scores 2, 4, and 5. With this option, you can view and compare your scores from each of the three bureaus side by side.
3. FICO® Score Providers: Credit Karma and myFICO are two businesses that provide access to FICO® Scores. Your FICO® Score 8 base score is usually available through these services, in addition to higher scores such as FICO® Score 2, 4, and 5.
4. Credit Monitoring Services: As part of their subscription plans, some credit monitoring services, like Experian CreditWorksSM, give you access to your FICO® Scores 2, 4, and 5. This option offers ongoing monitoring of your credit and scores.
5. Free Credit Score Providers: A few free credit score providers offer access to FICO® Score 2, 4, and 5. However, these services may have limitations, such as providing scores from only one credit bureau or offering a limited number of free score checks.
Choosing the Right Option:
The best option for accessing your FICO® Score 2, 4, and 5 depends on your individual needs and preferences. If you’re applying for a mortgage, checking with your lender first is a good starting point. If you want to compare scores from all three bureaus, purchasing them directly from the credit reporting agencies or using a credit monitoring service might be more suitable.
The Importance of Knowing Your FICO® Score 2, 4, and 5:
Understanding your FICO® Score 2, 4, and 5 is crucial for several reasons:
- Mortgage Approval: These scores play a significant role in determining your eligibility for a mortgage and the interest rate you’ll receive.
- Creditworthiness: Knowing your scores gives you a clear picture of your creditworthiness and allows you to identify areas where you can improve.
- Financial Decisions: Your FICO® Scores can impact other financial decisions, such as securing auto loans or credit cards.
Tips for Improving Your FICO® Scores:
Once you know your FICO® Scores, you can take steps to improve them. Here are some tips:
- Pay your bills on time: Payment history is the most significant factor in your FICO® Scores, so make timely payments on all your debts.
- Keep your credit utilization low: Aim to keep your credit card balances below 30% of your credit limit.
- Don’t apply for too much credit: Applying for multiple credit cards or loans in a short period can negatively impact your scores.
- Dispute errors on your credit report: Review your credit reports regularly and dispute any errors you find.
Knowing your FICO® Score 2, 4, and 5 is essential for making informed financial decisions, especially when it comes to securing a mortgage. By understanding where to access these scores and how to improve them, you can take control of your creditworthiness and achieve your financial goals.
Authorized FICO® Score Retailers
To make sure you’re receiving your FICO® Scores and not any other kind of credit score, get your scores straight from an authorized FICO® Score retailer. If they arent listed, they arent delivering FICO® Scores.
FICO® Score Open Access for Lenders and Service Providers
A program called FICO® Score Open Access aims to increase consumer access to and education about FICO® Scores. More than 200 financial institutions are partners with FICO, enabling their clients to view the FICO® Scores used for credit account management for free. You can view your FICO® Scores and the main factors influencing them for free if your bank, credit card issuer, auto lender, mortgage servicer, or other participating financial institution takes part in FICO® Score Open Access. Below is a list of some lenders participating in FICO® Score Open Access. Look to see if your lender or service provider is listed.
Get in touch with us if you would like to share FICO® Scores with your clients as a lender or service provider partner.
What are Mortgage Credit Scores? | FICO Scores 2, 4, & 5
FAQ
How do I find out my FICO 2 4 and 5 scores?
How can I get my FICO 2 score up?
How do I get my FICO score up 5?
How can I get my FICO ® score for free?
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.
What is the most common FICO score?
Currently, the most common FICO score is FICO 8. This version also can be used in auto lending, as well as for personal loan and credit card decisions. Each of the three major credit bureaus —Equifax, Experian, and TransUnion—generates consumer credit reports, which then are used to calculate FICO credit scores.
What is a FICO ® score?
A FICO ® Score is a credit score that’s 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 created different types of credit scores and released new versions of its scores that have updated how calculations are made.
How much does it cost to get a FICO score?
Some credit card issuers such as Bank of America and Discover give customers free FICO scores monthly. You can also pay to get a FICO score via the company’s own website. It costs $29.95 per month to get your FICO scores from all three credit bureaus, along with other kinds of information like your FICO automotive score.