If you’ve heard of credit scores, you may have heard of FICO scores. These are used by lenders to determine your creditworthiness and determine how much they’ll lend you. Credit scores range from 300 to 850 and are based on a number of factors including your payment history, debt load and credit utilization ratios (how much you owe compared with how much limit has been used). Some people think that if their score is high then they’re good for getting a loan; however this isn’t always the case! There are three tools available that can help give insight into your score: Credit Karma, Nerd Wallet and Credit Sesame.
CreditKarma is another free tool that can check your credit score. The site gives you recommendations for improving your credit score, including how to pay down debt, not overspend on rent or bills and more. You can also get recommendations for credit cards and loans based on your current FICO® Score.
Credit Sesame is a free resource that offers personalized advice based on your credit score and financial situation. With their help, you can get a better understanding of how your score affects your ability to borrow money, pay bills on time, or buy a home.
You can check your credit report for free once per year at AnnualCreditReport.com (US only). You’ll also be able to monitor it with alerts that let you know when new accounts open at any of the three major reporting agencies: Experian®, Equifax® or TransUnion®..
Nerd Wallet is a free service that provides a good summary of your credit score, along with detailed information about what influences it. It also has some useful tools to help you better understand how to improve your FICO score.
Nerd Wallet has an entire section devoted to explaining the components that make up each component of your FICO score:
Transactional Information – How many times you’ve applied for credit cards or loans over the past three years (and what were those applications like?).
Payment History – How often do you make payments on time? Are there any exceptions? What are their durations and amounts? In addition, Nerd Wallet also shows when certain things happened in terms of how long ago they occurred and how much money was involved in each instance—so if someone wants to know whether they need more debt consolidation without having access just yet because their payment history isn’t as clean as possible right now (or ever), using this tool will give them everything they need right away!
As long as you are careful, there are a few free tools available to check your credit score.
As long as you are careful, there are a few free tools available to check your credit score. While they may not be as accurate as paid tools, they can help you determine if there’s anything wrong with your current situation.
Credit scores are not the only factor in determining your creditworthiness; for example, someone who has been denied for a loan or mortgage because of poor income may still have great credit scores due to steady employment and low debt levels. However, it’s still important to know how much money is left on each account and when payments will be made so that creditors know when they can expect payment from you again (and therefore be more likely to approve loans).
We hope these three tools are helpful to you. The most important thing is to stay informed and keep track of your credit score as you move forward in life.