You probably already know what a FICO® score is. But do you understand what purpose it serves and why it’s so important to keep your number as high as possible?
Your credit score could affect many facets of your life, including where you live and what kind of car you drive. Anything over 670 is considered good, while scores under 630 are less than desirable.
Answer ten questions to get an estimate of your credit score. Then read about the many ways myFICO.com has your back.
What is a FICO score?
The three credit reporting bureaus use a formula to create your FICO credit scores, which is made up of these five components:
- 35% payment history
- 30% credit utilization
- 15% length of credit history
- 10% types of credit used
- 10% recent searches for credit or hard credit inquiries.
Also taken into consideration is information including court judgments, tax liens, and bankruptcies.
FICO plugs your information into a complicated formula, which results in a three-digit score between 300-850. This information is the only credit score used by 90% of top lenders to approve loans and credit cards. Read in more detail how your credit score is calculated.
Knowing your credit score is almost as important as knowing your blood pressure. A good credit score means you’ll be able to get more credit at a lower interest rate, while a poor credit score could prevent you from obtaining any credit at all.
What are the advantages of myFICO.com?
MyFICO started in 2001 to help people get their credit scores without jumping through hoops by going through a third party. Today, they provide an updated, more in-depth insight than most competitors. You can also use the site to regularly check your score and catch issues like identity theft and errors before they get completely out of hand.
If you fall victim to identity theft, all plans include 24/7 identity restoration services— which means they’ll help you restore your identity. Undoing identity theft on your own could take an average of 100 to 200 hours over six months and give you an ulcer.
Every member can also use the FICO Score Simulator, which lets you estimate the effects of 24 different financial decisions on your credit score. If you’re taking out a loan, this can help you determine what impact your credit score might have on your qualification and interest rates.
The only con is the higher cost. But you get what you pay for, and with myFICO you get a lot more bang for the buck.
There are three different myFICO plans:
Basic – $19.95 per month
- Experian credit reporting
- Monthly updates
- FICO Scores
- Scores for mortgages, auto loans and more
- Credit reports
- Score and credit monitoring
- $1 million identity theft insurance
- 24/7 identity restoration services
Advanced – $29.95 per month
- Complete 3-bureau coverage
- Quarterly updates
- FICO scores
- Scores for mortgages, auto loans and more
- Credit reports
- Score and credit monitoring
- $1 million identity theft insurance
- 24/7 identity restoration services
- Identity monitoring (Not available with Basic)
Premier – $39.95 per month
- Complete 3-bureau coverage
- Monthly updates (8 more yearly updates than Advanced)
- FICO scores
- Scores for mortgages, auto loans and more
- Credit reports
- Score and credit monitoring
- $1 million identity theft insurance
- 24/7 identity restoration services
- Identity monitoring
Sign up for myFICO.com here.
If you don’t want to pay for a subscription, these are some top free sites.
Credit Karma: Best for scores and reports:
- Provides free, updated credit scores and reports from TransUnion and Equifax
- Doesn’t require a credit card to join
Credit Sesame: Best for Personalized Tips:
- Offers personalized tips based on your credit profile, goals, and credit monitoring
- Doesn’t require a credit card to join
Credit.com: Best for Monthly Updates:
- Two free credit scores and reports–an Experian report and your VantageScore 3.0, which is updated monthly
- You must sign up for a free account, but it doesn’t require a credit card to join.
WalletHub: Best for Credit Alerts:
- Provides credit reports from TransUnion VantageScore
- Credit alert section gives you a report card-style letter grade on the factors that influence your score
Whether your credit score is high or low, it’s important to regularly track it on a regular basis—that’s where myFICO fits in.
MyFICO.com is your one-stop solution to compare your FICO scores and credit reports side by side from Experian, TransUnion, and Equifax. Before you take out your next loan, learn the right score for your credit goal, including mortgages, auto loans, and credit cards.
