In the 1990’s the Fair Issac Corporation, also called FICO, introduced the first credit score. These scores determine the borrowing power of every American. Despite other means of determining credit, the FICO score has remained the top way banks determines loan approvals. You may be buying an existing business and are in need of a loan. As an American looking to obtain a loan, knowing your credit score could greatly improve your chances of securing a loan. Finding your FICO score for free is possible, it can be very difficult. There are many ways you can end up with an incorrect number if you don’t know what you are doing. Here are some tips to help you find your free FICO score.
Check With Your Bank
Finding your FICO score may be as easy as checking with your bank. With customers more and more interested in tracking and improving their credit scores, many banks have started providing them as a free service. Many credit card companies also provide this service. These options would be better than the websites that claim to offer the scores for free. Unlike free sites, you have a relationship with these institutions. This will insure a more accurate score that you and your bank will accept.
Make Sure It Is A FICO Score
As you request your credit score, ensure it is a genuine FICO score. Each person has multiple credit scores. These scores are determined by what organization makes the score and what reporting agency provides them with data. Each of these groups data could be widely different and their algorithms are very different. This can produce radically different credit scores. However, around 90% of all lenders use FICO. Only a FICO score can give you a clear sense of whether you will be approved for a loan.
Credit Score vs. Credit Report
As you pursue a credit score, do not get a credit report by mistake. A credit score is a numerical representation of your borrowing capability. A credit report is the raw data that companies use to draw up credit scores. There are three main agencies that produce these reports. You can also gain access to these reports for free, and they can be invaluable in raising your score. The report will not help you locate your FICO score though.
Make Sure It Is Authentic
When choosing a free source, make sure that source is genuine. Authenticity is important when considering any element of loans from short term loans to long term ones. Many sites offer FICO scores, that are in fact calculated by the website. These scores might be way off what your actual score is. They hope you will continue to use their site because it offered you the best score. The problem is these sources won’t be used by the lenders. This can leave you vulnerable, since it will leave you expecting a better deal than you can get. To avoid this do you research and ensure your score is a real FICO score.
Check Multiple Sources
The best way to understand you credit score is to use multiple free FICO scores. Checking several at once will help you identify what your actual FICO score is. It will also give you a much broader sense of what your credit looks like. This will also help you locate problems in you credit that can be corrected. In the case of credit scores, the more information you have the better. Checking multiple sources will ensure that you know all about your credit.
These tips can help lead you to your free FICO score. Check to see if your bank or credit card provider offers it for free. Check to ensure ti is your actual FICO score, instead of another. Confirm that what you are getting is the credit score, and not the also useful credit report. You should remember that not all sites are offering an authentic FICO score. Check multiple sources to expand your information. If you’re unhappy with your credit score, look into money counting machine options to keep track of your cash. With these things in mind, you’ll make sure you have the credit to get your bank loan.