MyFICO.com – Free Consumer Credit Scores
Your FICO credit score is the overall basis of your credit rating, and is used as the main factor when averaging out your overall credit score number. The numbers are assigned to you by the 3 major credit reporting agencies, which are Equifax, Experian and Transunion. These numbers represent your credit risk and overall credit worthiness by your home and auto lenders, employers, landlords and all creditors.
A consumer’s credit is measured by this credit score, which was originated by the Fair Isaac Corporation. Started in the 1950’s as a way to offer businesses and creditors a way to gauge a consumer’s financial or credit risk, MYFICO.com helped all businesses and creditors make intelligent, sound decisions about the people they were choosing to loan their money and/or extend credit to.
Since so many people are in need of help with their credit and financial histories, this very well may be the biggest, most lucrative market for these agencies. As such, it’s never been more important for consumers to make educated decisions of their own in regards to who they decide to utilize as a resource for their own credit score and history improvement.
Arguably one of the most highly-regarded and well-respected of services comes from FICO.com themselves. The service is called MyFICO.com and is one of the most well respected online suppliers of the FICO credit score.
Your credit score ultimately helps you view the aforementioned base that is used by all of the other crediting agencies to create your credit score reports. With such information, you can effectively begin the process of improving your credit history and as a direct extension, begin raising your credit score.
FICO.com has been the standard for quite some time, so it’s no surprise that the www.MyFICO.com service is highly regarded. Your FICO credit score is layed out to be as easy to understand as possible for all consumers, and has been specifically designed to be easy to read, even if people have little to no experiance reading their credit score and profile.
The simple fact of the matter is that it’s important to utilize resources such as MyFICO.com in order to raise your credit ratings properly, and most importantly, to see what others see when they lend credit to you and base their interest rates on your credit history. If you know where your score stands, it gives the consumer the leverage they need to get the lowest interest rates possible by their creditors.
To view your credit scores in a printable format, click below - your scores will be delivered directly online.
–
————————————————-
FICO credit scores are a combination of three numbers that together, represent your credit worthiness rating – or in layman’s terms, your credit risk factor. These numbers ultimately represent a score that is computed by the Fair – Issac – Corporation and is derived using your past credit and financial history from each of the three main credit reporting bureaus: Experian, TransUnion and Equifax.
The average My FICO.com score ranges from anywhere in between 300 to 850. The higher these numbers, the better your credit worthiness and credit risk rating will be while the lower the score, the worse your credit worthiness and credit risk rating will be. It’s not very difficult to understand the overall FICO.com credit score scale as a whole, but people do seem to be generally uneducated as to what characterizes a good score and what characterizes a poor one.
The Main Advantages of Checking Your MyFICO.com Score Regularly
Perhaps the biggest advantage of utilizing a score is that you’re immediately able to see your current credit and financial standing. Your credit report and score will ultimately enable you to see just how much work needs to be done to improve your score and credit/financial history, as well as giving you all of the information necessary to make your improved credit score a reality.
Consumers find their MyFICO score extremely helpful – especially those who may be shopping for a home or auto loan. Since lenders and creditors for these types of loans put a great weight into FICO credit scores via the three main credit reporting bureaus, it’s always a good idea for one to reference their report prior to establishing any and all loans or new credit accounts. Mainly so one can use this information given to raise their credit score and clear up their financial history ahead of applying for the aforementioned loan or additional credit account(s).
What Else You Need to Understand About FICO Scores
Since your credit history may vary from one credit reporting bureau to another, your My FICO.com score will unsurprisingly vary as well. This score can and will also change whenever the information in your credit report is updated as time goes along.
Because so many of our banks, lenders and creditors use FICO scores, it only makes sense that personally utilizing your current score yourself, will give you a leg up on where you stand and with your own efforts in raising your credit scores.
Another way in which My FICO credit scores can be useful is that you can ultimately understand what types of loans you’re currently available based on your presently reported credit and financial information. Going into a car dealership or bank loan office knowing ahead of time what type of interest rates to negotiate for can really save you a lot of money annually.
Also, understanding how certain factors can influence your score will give you the ability to obtain the best possible profile and current history before applying for something as important as a home mortgage loan. Basically, this is something that can save you thousands in the long run.
MyFICO.com scores are calculated from a large array of different credit data points within your credit report. This data can be categorized overall into five groups (as outlined below). The percentages listed in the charts also reflect how important each of these categories are in determining your score.
Payment History:
• Specific account information on any and all accounts such as credit cards, installment loans, finance company accounts, mortgage loans or retail accounts.
• The presence of any potential adverse public records such as liens, bankruptcy, financial judgments and wage garnishments/attachments.
• Severity of past-due or delinquent financial accounts. (See: How long they’ve been past due or delinquent).
• The specific amount past due on any delinquent accounts or collection agency items.
• Time since the establishing and/or closing of any negatively reported past-due, delinquent, collection agency items or adverse public records.
• The given number of different past due items presently on file.
• The given number of different past due accounts that have been paid in full as agreed.
Amounts Owed:
• The total amount owed on all listed accounts.
• The total amount owed on specific types of listed accounts.
• The lack of (if applicable) any specific types of balances.
• The total number of listed accounts with balances.
• The total proportion of credit lines used (as opposed to total credit limits on certain types of revolving accounts).
• The total proportion of credit loan amounts still owed (as opposed to total original loan amount).
Length of Credit History:
• The total time since credit accounts have been opened.
• The total time since accounts have been opened by specific type of credit account.
• The total time since last credit account activity.
New Credit:
• The total number of recently opened accounts and the proportion of those accounts that have not been recently opened, sortable by type of account.
• Total number of recent credit inquiries by bureaus, creditors or lenders of any kind.
• The total time period since the most recent account opening, sortable by type of account.
• The total time since the last official credit inquiry (if applicable).
• The frequency of re-established positive credit history following any past payment and/or credit problems.
Types of Credit Used:
• The total number (see: presence, recent information or prevalence) of various types of credit accounts (eg: retail accounts, mortgage loans, credit cards, installment loans and consumer finance accounts).
If you’ve never viewed your MyFICO credit scores before then it would be in your best interests to read them carefully. They enable you to aview all of the information that your creditors and lenders access whenever they look into your current credit report. Understanding your MyFICO.com credit score, and ensuring your lower interest rates, you’ll be entitled to more favorable loan rates. This is especially so if you’re currently in the market for an auto or home loan.
