Image by Jonathan Cooper on Unsplash
By Ivan Serrano
Published December 6, 2023
Today, your credit score can be the most crucial number in shaping your financial life. Fortunately, recent advancements in financial technology have made it easy for consumers to monitor their scores anywhere and anytime.
Knowing your credit score is necessary when applying for a new mortgage, credit card, or personal loan. The number will give you insight into what kind of loans you may qualify for and what interest rates you must pay. Checking and monitoring your credit score will not hurt your credit, and there are different ways to get access to it without paying any fees.
FICO (which was founded as Fair, Isaac and Company) is a credit scoring services provider and a data analytics company that evaluates the credit files of millions of Americans. After analyzing your credit, FICO provides a three-digit credit score ranging from 300 to 850.
The first rule about credit scores is that the higher your score, the better it means for your finances. Check out the general ranges for how companies categorize credit scores.
The average FICO score in the US in the second quarter of 2023 was 716. The number shows that, despite growing anxiety about the financial health of US consumers, most Americans still have good credit.
A credit score tells lenders and other financial institutions your ability to repay loans and potential credit risk. Different factors can impact your score, including loan payment history and length of credit history.
FICO is only one of the two main credit scoring models in the US today, with the other being VantageScore. However, most lenders have an apparent preference for the former, with the company claiming that its model was impacting roughly 90 percent of lending decisions in the country.
If you are curious about your FICO credit score because you are building credit, you must learn how your scores are calculated. Check out the following factors below that impact your FICO score:
Financial literacy is a critical skill not only for adults but also for younger people who want to start saving early. If your Google search history is filled with queries like “What is interest on a savings account?” or “Secrets to improving my credit score,” this guide can help.
Knowing your three-digit FICO credit score can help you determine what financial products you qualify for and the terms you may receive. With a higher FICO Score, you will have better chances to get deals with low interest rates.
While several resources allow you to check your FICO Score, many charge a fee. If you are saving money and want to avoid paying anything, check out your options below.
The US government has an official site that allows you to access copies of your credit reports from the Big 3 credit bureaus once a year for free.
These reports will tell you a lot of important factors reflecting your financial health that impact your credit score. But, according to the Consumer Financial Protection Bureau, these reports will not include your score itself. Instead, you can try one of the approaches below.
The first place you should go to when looking for a place to check your FICO score for free is with your credit card provider. Today, many card issuers provide their cardholders free access to their credit score.
The following are examples of credit card providers that offer free FICO score access to clients:
To see your FICO score, you must be the primary account holder on your card. Once your issuer determines your eligibility, you can check your credit score from your online account. Today, fintech apps have credit score dashboards so users can easily find their scores online.
If you don’t have a credit card or your issuer does not offer free credit monitoring services, you can quickly access your credit score from the credit reporting firm Experian. One of the country’s three largest credit reporting agencies, Experian allows consumers to view their credit scores free of charge.
Credit reporting companies usually provide credit score updates to cardholders every 30 days. With this service, you can get alerts when there are changes to your credit report.
You will get notifications for new inquiries and credit accounts opened in your name with a credit monitoring service. It is a valuable service for those who want to build credit and consumers concerned about fraud.
If you are a customer of a non-profit offering credit or financial counseling, you may be eligible to get credit reports and access to your credit score. Since your counselor buys your credit report, you can request a copy of the document for free.
Today, several financial institutions provide free access to FICO credit scores to members and non-members. Some banks even allow clients to check their scores for free through online banking portals, as do many credit unions.
If you plan on buying a new or secondhand vehicle, you may get your FICO score and FICO auto score through the finance department at the car dealership. Car sellers will offer this information since your score will help determine whether you can repay car loans. But keep in mind, in order to get your credit report the dealership may be running a “hard inquiry,” which itself can impact your credit.
Those with student loans may also see their credit score for free. For example, if you are a borrower of Sallie Mae Smart Option undergraduate student loans, you can get this service without paying anything.
Understanding your credit scores, especially your FICO scores, can play a crucial part in your journey to improving your finances. Remember that your credit score impacts your costs when you apply for a loan to buy a new car or home. A good credit score means you have a better chance of getting a loan, which can help you save on upfront costs.
Fortunately, there are many ways to view your FICO scores for free. With this advantage, you can stay informed about the state of your credit and make any changes to help ensure a solid financial future.
Ivan Serrano has been been a technology and business writer since 2015. He is obsessed with our constantly evolving fast-paced society and finding ways to teach readers something new. He has worked with companies like SmallBizClub, StartupNation, Namecheap, Time Doctor, and Searcheye—which has a business relationship with FairShake.
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