When you are making life plans such as buying a home, getting a car loan or anything that you need a loan for then you need to be in the know about your credit score AND specifically your FICO credit scores. I know many of you have heard of a credit score and how important that is when it comes to things like mortgages but I am sure there are many like myself who did not know the importance of my FICO® Score until it came time to buy our house. I have partnered with MyFico to help you be informed so you are not lost when the time comes to get started with your life plans of buying a home, a car ect.
When we were talking about buying a home Tom and I focused on our credit scores – which we had been on top of for years due to learning early on about some of his family members who used his name to open credit cards and who put medical bills of theirs in his name as well. While this won’t happen to most people, him having the same name that is off by just the middle name caused us a bunch of mess that we had to figure out.
I was in the dark on what a FICO® Score was originally and I am sure many of you are like I was wondering what it is exactly. In short, FICO® Scores are the most commonly used credit scores. FICO® Scores are generated by a scientific algorithm designed to evaluate a person’s credit risk to a lender. The algorithm is periodically updated to reflect changes in consumer behavioral trends, resulting in multiple FICO® Score versions. Your FICO® Score is the one that creditors look at, it is the one that makes the choice on if they are going to trust you or not when getting a loan.
Ok so now that I have rambled a bit here I am going to break it down for you so when you are going to get your house or car you are in the know about FICO!
- FICO® Scores are the most widely used credit scores—according to a May 2015 CEB TowerGroup analyst report, FICO®Scores are used in over 90% of U.S. lending decisions.
- Lenders use FICO® Scores to get a fast, objective and reliable measure of credit risk, which makes the lending process faster and fairer for people.
- You have more than one FICO Score. Different lenders use different versions of FICO® Scores when evaluating your credit. Auto lenders, for instance, often use FICO®Auto Scores, an industry-specific FICO® Score version that’s been tailored to their needs.
- Non-FICO scores use different scoring formulas, have widely varying score ranges and are seldom used in lending decisions, they may not give you an accurate measure of your credit risk compared to how a lender will see you.
After using Myfico I have come to love some of the options they have to help you as well. You can track changes to your FICO® Score, and they even give you access to a FICO Score Simulator where you can simulate how paying down a credit card balance might impact a FICO Score.
Plus the system gives you alerts when something that will affect your score happens! That makes it really easy to keep an eye on things!
You can head on over here and get ALL of your credit scores in one place including your FICO Score so you can be in the know about what is important when it comes to your credit and FICO Score!
Please note that a commercial relationship exists between our site and FICO that may include FICO providing us with product and other forms of payment. The views of the author(s) herein do not necessarily reflect the views of FICO. FICO is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act, and does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” credit records, credit history or credit ratings.