Building Credit, Credit Cards

A Guide to Getting Your Free Credit Score

Wednesday, July 5, 2017

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Alexandria White

As a consumer of financial products it is important to monitor your credit score on a regular basis. This will ensure that you know where you stand in the credit landscape when it comes time to apply for a new credit card, loan, mortgage or other product. Monitoring your credit score regularly can also help notify you of any unexpected changes to your credit history, such as fraud.

There are numerous free credit scores available for you to access; however, not all scores are considered equal. Credit lenders will often pull specific scores, depending on the product you are applying for. Therefore, we have created a simple chart for you to see where you can get specific credit scores from the top two companies — FICO and VantageScore. The best part is, it’s all for free!

Read on for details on important aspects that make up your credit score and which score suits your individual needs.

Finding the Right Credit Score

Where to Access Your Credit Score for Free

The below chart lists some of the various versions of credit scores and where you can access them for free from a variety of banks, credit card companies and personal finance websites.


VantageScore 3.0
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	Disclosure: LendingTree is the parent company of MagnifyMoney
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FICO 5	-		-
FICO 8
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FICO 9	-	-
FICO Bankcard Score 8		-	-
FICO NextGen Score	-		-
FICO NextGen Score	-		-
Unknown FICO Model
Unknown FICO Model		-

FICO^® Score vs. VantageScore

You may be wondering which score is better — FICO or VantageScore? We’re going to break down what the different versions of the two scores are best for in the next section, but for now here are several differences between the two major types of credit scores.

Find the Best Credit Score for Your Needs:

The credit score you are looking for varies, depending on what type of credit you aim to apply for. Each credit score version has different benefits, and lenders pull certain scores in accordance with your application.

Below we will go over the best credit scores for various financial products — and where you can get them.

	Credit Score Monitoring	Credit Cards	Mortgage Loans & Mortgage ReFis	Auto Loans	Personal Loans, Student Loans, Retail Credit
The Best Option	All Vantage- Scores & FICO® scores	FICO® Bankcard Scores & FICO® Score 8 primarily; FICO® Score 3	FICO® Scores 2, 4, 5	FICO® Auto Scores 2, 4, 5, 8, 9	FICO® Score 8
Where to Find Them	Plenty of free options. See our chart above.	FICO® Score 8 only:-Credit Scorecard by Discover -freecreditscore.com	myFICO for $59.85	myFICO for $59.85	Credit Scorecard by Discover -freecreditscore.com
Additional Info	If you’re simply looking to monitor your credit score and stay on top of your credit, either VantageScore or FICO® score will suffice.	When applying for a new credit card, these scores are most likely to be pulled by credit card issuers. Lenders may pull your score from one or all three bureaus.	These scores are used in the majority of mortgage-related credit evaluations, with lenders pulling your score from all three bureaus. However, these scores are not free and can only be purchased at myFICO.	Auto scores are industry-specific and used in the majority of auto-financing credit evaluations. Lenders may pull your score from one or all three bureaus. Unfortunately, these scores are not free and need to be purchased at myFICO.	For other financial products such as personal loans, student loans, and retail credit, FICO® Score 8 is best. This is the credit score most widely used by lenders, and they may pull your score from one or all three bureaus when making a decision.

Credit Score Monitoring

The best options: All VantageScores and FICO scores

Where to get them: See our chart

If you’re simply looking to monitor your credit score and stay on top of your credit, either VantageScore or FICO will suffice.

New Credit Card

The best options: FICO^® Bankcard Scores or FICO^® Score 8 primarily; FICO^® Score 3

Where to get them: Get your FICO Score 8 from Credit Scorecard by Discover or freecreditscore.com

When applying for a new credit card, these scores are most likely to be pulled by credit card issuers. Lenders may pull your score from one or all three bureaus.

Mortgage Loans and Mortgage ReFis

The best options: FICO^® Scores 2, 4, 5

Where to get them: myFICO for $59.85

These scores are used in the majority of mortgage-related credit evaluations, with lenders pulling your score from all three bureaus. However, these scores are not free and can only be purchased at myFICO.

Auto Loans

The best options: FICO^® Auto Scores 2, 4, 5, 8, 9

Where to get them:myFICO for $59.85

Auto scores are industry-specific and used in the majority of auto-financing credit evaluations. Lenders may pull your score from one or all three bureaus. Unfortunately, these scores are not free and need to be purchased at myFICO.

Personal Loans, Student Loans, and Retail Credit

The best option: FICO^® Score 8

Where to get it: Credit Scorecard by Discover or freecreditscore.com

For other financial products such as personal loans, student loans and retail credit, FICO Score 8 is best. This is the credit score most widely used by lenders, and they may pull your score from one or all three bureaus when making a decision.

Other Scores and Their Value

FICO Score 9 is the newest model and not widely used yet. It is also not available for free at this time. The benefits of this score are that it doesn’t penalize you for paid collections and reduces the ding you get from unpaid medical collections. See our review for more information.

The FICO NextGen score is used to assess credit risk, but only a small number of lenders use it due to its 150-950 scoring range and older model.

Credit Score Basics

What are the three credit bureaus?

There are three credit bureaus that report your credit score to financial institutions and personal finance websites. The bureaus are TransUnion, Experian and Equifax. They collect credit information from a plethora of lenders and data providers and then consolidate it into a credit file, with your credit score being the key piece of information. You can’t get your credit score directly from the bureaus, but earlier in this article we discussed numerous resources where you can access your credit score — for free.

What is a FICO^® score?

A FICO score is a number that predicts how likely you are to pay back a loan or other credit products in a timely manner. FICO scores range from 300 to 850. The higher your score, the more likely you are to be approved for credit cards, loans, mortgages and other financial products. FICO scores are the most widely used credit scores — influencing over 90% of U.S. lending decisions.

How is a FICO^® score calculated?

FICO scores are calculated from data in your credit reports and made up of the following five key factors:

Payment history (35%):
Your payment history is simply a record of your on-time or missed payments. It’s the largest component of your FICO score — and therefore the most important aspect to focus on if you want to improve it.
Amounts owed — aka utilization (30%):
Utilization is the amount of your credit limit you use. It is ideal to have a utilization below 30% at the very most. If you have two credit cards, one with a $10,000 limit and the other $5,000, then your total credit limit is $15,000. If you have a combined $3,000 debt across both cards, your utilization would be 20%.
Length of credit history (15%):
The total length of time that you’ve had credit across all products you have. For example, expect your credit score to be slightly lower if you have had credit for six months versus six years.
New credit (10%):
Frequency of credit inquiries and new account openings. When you open a new account, your credit score will take a slight dip for about six months, then it will rise — as long as you’re responsible in the other four ways mentioned.
Credit mix (10%):
This is the different types of credit you have. This includes credit cards, retail accounts, installment loans such as mortgages and auto loans, and other financial products. The more variety of credit you’re responsible with, the better your score will be.

What is a VantageScore?

A VantageScore is also a number that measures your credit risk. These scores typically range from 300 to 850 (501-990 for earlier models) and are used by 20 of the 25 largest financial institutions. VantageScores are in line with FICO — the higher your score, the better. VantageScores are more widely available for free from online resources than FICO scores; however, a majority of lenders pull your FICO score when making decisions.

How is a VantageScore calculated?

VantageScores are calculated from data in your credit reports and influenced by the following six key factors:

FAQ

How often is my credit score updated?

Credit scores are typically updated every 30 days. Depending on your activity, your score may remain the same or fluctuate.

Will checking my credit score lower my score?

No, checking your score will not do any damage to your score.

Why are my credit scores different?

Your credit scores differ based on the information that each bureau pulls. Most information is the same, but one bureau may use unique information that another bureau doesn’t have, creating a difference in scores. Also, if you compare your FICO and VantageScores, they will differ because they use different criteria.

MagnifyMoney’s parent company, LendingTree, offers a free credit monitoring service that includes access to your VantageScore 3.0.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Alexandria White |

Alexandria White is a writer at MagnifyMoney. You can email Alexandria at ale[email protected]

TAGS: CREDIT SCORE, FICO, vantagescore

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Building Credit

When It Can Make Sense to Open a Store Card

Tuesday, July 16, 2019

Julie sherrier

“And would you like to open a [insert store] card today to receive an extra 10% off your purchase?”

We’ve all heard this upsell strategy. Store credit cards seem to be available at just about any place you exchange currency for goods — except for maybe 7-11. But before you sign up, it’s important to know how opening a store card can help, or hurt, your finances.

What Are Store Credit Cards?

There are two types of store credit cards: store-only (closed loop) and co-branded (open-loop). The closed loop version limits your ability to use the card except with the retailer and its affiliates. The open-loop version carries a card network logo, such as Visa or Mastercard, which can be used anywhere Visa or Mastercard cards are accepted.

Some retailers offer both closed and open-loop versions of their cards, while others only offer a closed-loop card. Typically, the closed-loop cards are easier to be approved for: they often come with lower credit limits, and can be great for consumers looking to build or rebuild their credit scores.

The open-loop cards can require a higher credit score for approval, and some retailers will allow you to upgrade from a closed-loop card to an open-loop card after you’ve demonstrated good payment behavior with the closed-loop card. Or, they may require card applicants to apply first for the closed-loop card and, upon review of their credit file, approve them for the open-loop version, depending on their creditworthiness.

Pros and Cons of Store Cards

In addition to an initial discount on your first purchase, store cards can entice shoppers to return with ongoing discounts, special pricing and rewards programs. If you’re a regular shopper at that particular retailer, those discounts can help you save money, provided you pay off the balance in full when the bill is due. On the flip side, you may find yourself overspending on the card, as the temptation to just pull out the card when you don’t have the cash could be hard to resist.

Here are some pros and cons of applying for a store credit card:

Pros

Initial and ongoing discounts. If you’re purchasing a large-ticket item, getting a 10% or 20% discount can be a smart decision. And if you regularly shop at a particular retailer, taking advantage of ongoing promotions and sales will also help you save money.

Store perks. In addition to regular discounts and promotions that may come with a store card, some also throw in more perks like free shipping, invitation-only events, coupons and rewards programs.

Building credit. If you’re new to credit, getting a low-limit store card can be a great way to get started, as these cards are typically easier to qualify for. The payment activity of the card will be reported to the credit bureaus. As long as you handle the card responsibly, your good payment history will be reflected on your credit reports.

Rebuilding credit. If you’ve made financial blunders that have negatively impacted your credit score, getting back on track with a store card is an option you can try before having to resort to a secured card, which will require a deposit of several hundred dollars.

Cons

High interest rates. The average APR for new store credit offers is 24.97%, compared to 16.91% for credit cards in general. With such high APRs, you don’t want to roll over a balance month to month on these cards or you may fall into a debt spiral, finding it ever more difficult to dig your way out of debt as interest charges pile up. Plus, any interest you pay will effectively negate any discount you got for using the card in the first place.

Low credit limits. While a retailer may increase your credit limit over time with responsible use of a store card, your initial credit line on a new store may just be a couple hundred dollars. If the amount of your purchases regularly comes close to maxing out your credit limit, your credit score will be negatively affected, as credit utilization (your balance compared to your credit limit) accounts for 30% of your credit score.

Read 6 Simple Steps to Improve Your Credit Score

Increased temptation to spend. Knowing you’ve got access to retailer credit, even though you don’t have the cash to spend, can make it too easy to rack up purchases you otherwise you couldn’t afford. And if you don’t have the funds to pay off the balance at the end of the month, you’ll be socked with sky-high interest charges.

Limited rewards redemption. Store card rewards programs typically require cardholders to use their rewards, cash back or points at that particular retailer or its affiliates only.

Deferred financing traps. If you apply for a 0% deferred financing credit card offer where you are given a fixed period of time to pay off a purchase without incurring interest charges, know that you run the risk of being hit with back interest from the time of purchase if you don’t pay off the balance during the 0% promotion time frame.

Hard inquiry. Anytime you apply for a new credit card, the lender will review your credit file to evaluate your creditworthiness. This is called a hard inquiry and will knock a few points off your credit score. The good news is that the inquiry’s impact will only last a year.

Read Minimize Rejection: Check if You’re Pre-Qualified for a Credit Card

Tips for staying out of trouble with store cards

Have a payoff plan. If you apply for and use a store card specifically to take advantage of a discount or promotion, have a plan in place for paying off the balance before interest charges accrue.

Resist overspending. Leave your store card at home unless you have a specific purchase in mind — that way you won’t succumb to impulse spending if you happen to walk in the store and have the card on hand to make unplanned purchases.

Make multiple monthly payments on high balances. To maintain low credit utilization on a low-limit card, it can be smart to make multiple payments online throughout the month. Better yet: once you make a purchase with the card, pay it off the next day online.

Cancel the card if it leads to too much temptation. While canceling a card can hurt your credit score, being buried in debt you can’t easily pay off is worse. If having a store card makes it too easy to spend beyond your means, you’re better off without it.

Bottom line

Store cards are great if you’re looking for a way to build or rebuild your credit score as they’re generally much easier to qualify for, but they can be dangerous if they tempt you to spend more than you can afford to repay. If you’re not careful, the high APRs and low credit limits that are often associated with store cards can quickly lead to trouble. But if you shop regularly at a retailer, being able to access discounts on a regular basis can help you save money, as long as you’re diligent about paying off the balance in full by the due date.

Julie sherrier |

Julie sherrier is a writer at MagnifyMoney. You can email Julie here

TAGS: CREDIT CARDS, CREDIT HISTORY, CREDIT SCORE

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Building Credit

View Your Free FICO Score for all 3 Credit Bureaus

Tuesday, July 9, 2019

Nick Clements

There are lots of free credit scores floating around, but most of them are not the true FICO^® score that lenders subscribe to and use as part of their decision.

However FICO^® is working to change that by allowing banks and credit unions to give you free ongoing access to the real score they use to make lending decisions as long as you are an account holder.

The easiest place for anyone to get their free FICO^® score is via the Discover Credit Scorecard. You do not need to be a customer of Discover – anyone can register and get their official FICO^® score for free. The data is from the Experian credit bureau.

You can also get a free Experian FICO^® 8 score at freecreditscore.com. While that site used to require you to enter your credit card to get information, your FICO^® score and Experian report are completely free with no credit card information needed.

To find out where to get your FICO^® score from the other credit bureaus, read on.

Every bank chooses at least one of three credit bureaus to calculate a FICO^® score: Equifax, Experian, and TransUnion. The FICO^® score one bank uses can be different than another depending on which credit bureau they pulled a report from.

The good news is, you can now see your real, free FICO^® score from all three credit bureaus depending on which banks hold your accounts. FICO^® itself charges $19.95 a month for you to see those scores, though they also throw in full copies of your credit reports, which the free bank scores do not.

Here’s where to find your real, free FICO^® scores from banks or credit unions anyone can join:

Equifax Scores

Citibank

Available with: Any Citibank branded credit card. This does not include Citibank cards with other brands like the American AAdvantage or Hilton HHonors cards.
Score updated: Monthly
Where to find it: On your online account or the Citi app
Learn more

DCU Credit Union

Available with: Any credit card, or a checking account with direct deposit
Score updated: Monthly
Where to find it: Look for an invitation in your online account
Learn more

Huntington Bank

Available with: The Huntington Voice credit card – you will get a FICO^® Bankcard Score 2 from Equifax
Where to find it: Log into your account and you’ll see a link

PenFed

Available with: PenFed members with active checking accounts, installment loans, and revolving lines of credit
Score updated: When PenFed refreshes – no set schedule
Where to find it: Login to your account and click ‘Your FICO^® Score is Ready’
Notes: PenFed uses a more advanced ‘Next Gen’ FICO^® score that has a different scale than traditional FICO^® scores, with 150 as the lowest score and 950 as the highest score. Most banks use a score with a scale of 300 to 850. Because of this the score you see on PenFed’s site may be higher or lower than what you see from others.
Learn more

State Employees Credit Union of North Carolina

Available to all credit card holders

Experian Scores

Capital One and American Express regularly use Experian’s FICO^® among others for credit decisions.

American Express

Available with: Any American Express credit card
Score updated: Monthly
Where to find it: On your online account

Chase

Available with: Chase Slate®* accounts
Score updated: Monthly
Learn more

Discover

Available with: All Discover cards and if you are not a Discover cardholder, you can sign up to get your FICO^® score for free by visiting creditscorecard.com.
Score updated: Monthly
Where to find it: On your statement and online

First National Bank of Omaha

Available with: Any credit card account
Score updated: Monthly
Where to find it: On your online account
Learn more

Wells Fargo

Available with: Any Wells Fargo credit card
Score updated: Monthly
Where to find it: On your online account
Learn more

Please note: a previous version of this blog post noted that USAA provides a free FICO^® credit score. USAA actually provides a free VantageScore.

TransUnion Scores

Bank of America

Available with: Select credit card accounts
Score updated: Monthly, with history
Where to find it: Link available on your account summary page under the ‘Tools and Investing’ section

Barclays

Available with: Any credit card account
Score updated: Monthly
Where to find it: Link available on your account summary page

Walmart / Sam’s Club

Available with: Walmart Credit Card, Walmart MasterCard, or Sam’s Club Credit Card
Score updated: Monthly
Where to find it: At Walmart.com/creditlogin, only if you enroll in online delivery of monthly statements
Learn more

Unknown Bureau

Other, less open to the public free FICO^® providers include:

Ally, for auto loan holders
Hyundai and Kia Motor Finance allow customers to view their FICO scores through their online accounts.
Sallie Mae offers a free, quarterly TransUnion score if you receive a new Smart Option Student.
Merrick Bank doesn’t have open applications for its Platinum Visa, but does offer free scores to its cardholders.
Some credit unions with limited membership also offer scores, so check yours to see if it provides them.

Find the Best Credit Score for Your Needs:

The credit score that you are looking for varies, depending on what type of credit you are looking to apply for. Each credit score version has different benefits, and lenders pull certain scores in accordance with your application.

Below we will go over the best credit scores for various financial products — and where you can get them. Refer to our list above to see if you can access the credit score for free, as not all scores are available for free.