Get Free Credit Score – FICO Report

Josh D Paul asked:




Credit scores are important indicators of creditworthiness. Lenders use these numerical values to assess risk before extending credit or financing terms with applicants. These scores will often determine the interest rates available and whether or not they’re favorable.

The most widely used type of credit score is one that is calculated using the FICO scoring model along with data from two of the main credit reporting agencies in the U.S. Consumers can get FICOs from Equifax and TransUnion. Experian terminated their relationship with FICO in 2009 and it no longer offers FICO based scores.

Equifax and TransUnion FICO scores may differ from each other. Each one is calculated from each agency’s consumer credit files. Because creditors and lenders do not always report their data to all three agencies, credit files will sometimes be very different from each other.

FICO scores range from 300 to 850. The higher the score the more creditworthy it is and the less risk is associated with the applicant. The average FICO score is 687 and the median FICO score is 723. A general breakdown by financial advisor Suze Orman goes as follows:

760-850: Excellent

700-759: Very Good

723: Median

660-699: Good

687: Average Score

620-659: Not Good

580-619: Poor

500-579: Very Poor

FICO scores are calculated from the data on consumer credit files stored at each of the credit reporting agencies. To diagnose one’s credit score, a person should analyze the areas that contribute the most to the calculation of one’s FICO score. The components used to calculate the score is as follows:

Payment history 35%

Amounts owed 30%

Length of credit history 15%

New credit 10%

Types of credit used 10%

One alternative to the FICO scoring model is the VantageScore model. This algorithm was developed by Equifax, Experian and TransUnion in 2006. Some say it’s a more flexible scoring model, because it takes in more factors and it helps those with lower FICO scores look more favorably. Because it is still relatively new, it has not gained popular acceptance among creditors and lenders yet.

The VantageScore is computed differently than the FICO score. It also has a different scoring range and different assessment scales. It starts from 501 and goes all the way to 990. The national VantageScore average is 736. It is generally broken down into these categories or grades:

A: 901-990: Super Prime, top 11% in population

B: 801-900: Prime Plus, top 40% in population

C: 701-800: Prime, top 60% in population

D: 601-700: Non-Prime, lowest 38% in population

F: 501-600: High Risk, lowest 19% in population

Vantage scores will seem to be higher than FICO scores. That’s because they use a different scoring system and range. Like FICO, the higher the VantageScore is, the better the score is. The VantageScore uses these components to calculate its score.

Payment History – 32%

Credit Utilization – 23%

Credit Balances – 15%

Depth of Credit – 13%

Recent Credit – 10%

Available Credit – 7%

Peter

ehowfinance asked:

Getting a free FICO score, or credit score, can be done by visiting myficoscore.com or myfreeficoscore.com, and filling out the appropriate information. Monitor your FICO score on a regular basis to ensure that there are no problems with your credit report usingadvice from a registered financial consultant in this free video on personal finance and money management. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC

Patrick

The Last Wassupper! asked:


I forgot to pay 2 credit cards last month. I paid them both off in full, of amounts $400 and $850, hoping it cancels out the FICO score drop. How many points will a typical score drop if you do miss a payment.

Daniel

S. Michael Windsor asked:




Your FICO score is the number which determines your ability to pay back an amount of money in a loan without risk of default. This score is calculated using several different factors which all have a large impact on your credit. The faster you learn what these areas are, the more help you will have on improving any negative marks on your credit report and score.

The FICO score is actually an acronym for Fair Isaac Co and is used not just by banks and lenders, but also by landlords and even potential employers. The outcome of your credit score can and will affect your chances of getting a car, insurance, job, home and more which in turn will affect what your required down payment amount will be along with interest rates charged as well as the need for more information on you such as income statements and verification.

Your FICO score is based on the data derived from five different areas in your financial records. These areas are your payment history, types of credit used, length of time you have been paying off revolving debts, the amounts you owe, and any new lines of credit which you have currently applied for or opened.

Even though credit scores are widely used, there are three consumer credit reporting companies currently available to provide consumers with their FICO credit scores. Experian, Equifax and TransUnion all provide the credit scores using numbers which appear as very different from the other, but they all base their data on the same information about the individual being reported on. There are three different scoring methods that the credit reporting companies use in order to determine a fair number which are based on the needs for auto loans, mortgage loans, and consumer loans.

Credit scores can provide much needed information about an individual in order to expedite many processes which would normally take a lot longer to check into when considering loans, insurance, employment and more. FICO scores may be low for many individuals at times, but the good thing about your credit score is that they can always be improved over time through proper usage and regular monitoring of your credit.

Daniel

Josh Riverside asked:




The firm Fair Isaac Corp. developed a computer model to aid the three main credit bureaus Equifax, Experian, and Trans Union. The model uses a scoring method depending up on your credit information such as credit history, current credit, credit balance, and credit applied for. This information is then compared to the thousands of other customers to give you a FICO score.

The breakdown of the calculation is- past payment history worth 35 percent, outstanding debt is 30 percent, length of credit for 15 percent, new credit for 10 percent, and type of credit is 10 per cent.

All this information is time sensitive. In other words, the score is calculated at the time of request. Therefore, the score is based on what is recent. It will evaluate any delinquencies and bankruptcies in the past, but it will also assess how many late payments you have on the date of request.

Similarly, if the amount of credit utilized by you today is 75 per cent of your total available credit your FICO score is likely to go down as against a person, who is only utilizing only 25 per cent of his or her available credit.

Also note that during the calculation of such FICO score, all other personal information is kept secret. The score is not evaluated on the basis of sex, race, religion, or your marital status.

If you are aware that you may apply for credit sometime soon, it would be advisable to improve your credit status. However, note that this quick fix can only deal with current credit issues and not the ones which have been present there for years. The best step you can take is pay off your credit cards and any other outstanding bills. This will reduce your balance owed and result in a higher FICO score.

Zachary

Jill C asked:


Hello there I have a very low FICO score because of mistakes I made 3-5 years ago. In the last few years I have always made at least minimum payments and have all my creditors reporting an R1. I am just wondering why my score is still so low and how many points are gained for making regular payment.

Bryan

Alison Cole asked:




It is important for people to be periodically aware of their current FICO scores since these digits are important when updating credit reports to enable individuals to obtain credits or loans. FICO sores indicate a person?s overall ranking to lenders, creditors, and other financial institutions and must be checked and monitored constantly.

The FICO score was developed and perfected by the Fair Isaacs Company and is calculated based on a number of weighted factors. There are a number of credit reporting agencies that exist to calculate peoples? FICO scores. Despite the differences of these companies in assigning values to variants, they essentially use the same ?secret? formula in computing for one?s FICO scores.

When checking one?s FICO scores, it is always helpful to get them from different credit reporting agencies to avoid bias and to provide a clearer picture of one?s current credit standing. It is common to have different credit scores from varying credit reporting agencies, also differing from one?s FICO score.

One?s FICO score may be checked through the Internet, thanks to the merging of FICO and a popular credit reporting agency. The partnership claims to provide the most accurate scoring record and may be easily accessed by simply logging on to their website.

The number of factors that affect one?s FICO score may result to one?s score to change daily which is why it is very important to check on the FICO score at a regular basis. Checking one?s FICO score does not come free, however, there are free credit score estimators available, one can only acquire a rough estimate of his/her credit score based on the given data available as reported by the user. These free credit estimators usually assume certain factors to be true which actually limits the accuracy of one?s credit scores. Hence, despite the wide availability of free credit estimators, experts agree that it is always best to check on one?s FICO scores through legitimate and certified credit reporting agencies.

Bryan