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GettyA great credit score can deliver many benefits, including savings on interest costs and auto insurance and access to the best rewards credit cards A high score smooths the way to homeownership and, if you’re looking to rent, it means you’re more likely to be approved for a lease and may even be able to reduce or avoid security deposits.
But how can you keep track of this crucial element of financial health without having to pay for it? Here’s what you need to know to get your official FICO score for free.
Credit scores, calculated from lending information tracked on your credit reports, impact how much lenders will be willing to lend you and at what rate. It considers, among other things, your payment history, length and variety of credit history, and credit utilization. These scores help estimate your likelihood of paying your debts on time and in full. While not all scores are the same, most lenders rely on one main scoring system–FICO.
Over 90% of lenders use FICO Scores, a system created by Fair, Isaac & Co. (which officially renamed itself FICO in 2009). Base scores have a 300-850 range, with a higher score indicating better credit quality.
Calculating your FICO score requires data compiled by a credit bureau. The three main consumer credit reporting agencies are Equifax, Experian, and TransUnion. All of these companies track information about your credit behavior, each attempting to get a full picture of your creditworthiness.
Each of these agencies is required to offer consumers a free copy of their report every 12 months. You can receive these reports through AnnualCreditReport.com. However, this will just include details on the information tracked – not your credit score.
Instead, the information in those reports is used to calculate your FICO credit score. And your FICO score might be different depending on the credit bureau a lender uses. One agency might have a negative mark on your report that the others don’t, or simply have information about more accounts.
If you want to see your exact score across agencies directly from FICO, you’ll have to purchase it separately from myFICO. Purchasing all three currently costs $59.85.
While these reports are excellent if you’re worried about having a borderline score before applying for a mortgage or home loan, you won’t need that much detail to keep an eye on your credit health month-to-month. For that, you can use one of the free services available to track your FICO credit score.
The easiest way to keep tabs on your FICO credit score is with Discover’s free Credit Scorecard. You don’t have to be a Discover customer to get your score, and you’ll see a full dashboard of details including what is helping and what is hurting your score.
For non-customers, the score shown is your FICO Score 8 as calculated by Experian. For customers, you’ll see your FICO Score 8 from TransUnion.
To sign up to receive your Discover Credit Scorecard, you’ll need to enter your name, address, and social security number. This information is required to pull your information from the credit agencies. There will be no ding to your credit history.
Many credit card companies now offer your credit score as a benefit to holding a card with the company. However, not all companies show a FICO score. Make sure you understand which score your credit card provider supplies.
For instance, American Express, Barclaycard, Discover, First Bankcard, and Walmart Credit Cards all provide FICO Scores. But other providers, like Capital One, use a VantageScore.
Both a FICO score and VantageScore are developed to judge an individual’s credit worthiness. But the VantageScore model wasn’t introduced until 2006 and isn’t as widely used by lenders. So, you want to know your FICO score which is most likely to be used by a company evaluating your financial health.
You can find a list of credit card issuers offering free credit score access here.
Freecreditscore.com used to require a credit card to get your score. The site is now part of Experian, and you can receive your monthly FICO Score for free without entering any payment information.
Your free membership will also provide Experian monitoring alerts. These alerts include emails for new credit inquiries, new accounts, fraud alerts, and information updates. You’ll have to remember to log in each month to see your updated score though, as Freecreditscore.com doesn’t send out regular updates about your exact score.
Freecreditscore.com differs from Credit Karma and Credit Sesame. It provides a FICO Score, while Credit Karma and Credit Sesame use a VantageScore. As noted above, the VantageScore is calculated differently than a FICO score.
Tracking your score on a monthly basis can help you catch fraud or identity theft early. It can also give you tips on improving your score over time. Working on your credit score consistently over time, instead of just in the weeks or months before you apply for a new loan, will put you in a stronger position to get the best terms.
With multiple ways to access your FICO credit score for free, whether or not you have a credit card, it is easy to start keeping track of your credit health today.
