How To Find Out Your Actual Credit Score
How To Find Out Your Actual Credit Score - If your credit score is above 800, good. This shows lenders that you're a great borrower and puts you well above the average score for US consumers. In addition to bragging rights, a credit score over 800 can get you better offers and faster approvals when you apply for a new loan. Here's what you need to know to get the most out of your 800-plus credit score.
First, an update on credit scores. A credit score is a three-digit number that summarizes your credit risk based on your credit information. The most common credit score is the FICO score, which is calculated using five basic categories of credit information from your credit reports. Here they are, along with what percentage of the score they make up.
How To Find Out Your Actual Credit Score
FICO scores are based on a range of information from your credit report, but they don't take into account your age, education, occupation, gender, income, marital status, race or zip code.
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While each lender has its own credit risk standards, the following chart from FICO is a general guide to what each score range means:
Today, the average FICO score in the U.S. is 716 — the highest since FICO began tracking score distributions. After falling to 686 in October 2009, the national average FICO score has risen for 11 consecutive years, representing a steady upward trend in US credit quality.
There are also many who score in the very high super-prime score range of over 800. As of April 2021, 23.3 percent of consumers now score between 800 and 850, compared to 20.4 percent five years ago.
According to FICO, several factors contributed to the average and higher number of consumers scoring in the 800-plus range, including:
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You've worked hard for that 800-plus credit score, so make sure you make the most of it. In addition to bragging rights, your excellent credit score also entitles you to several financial benefits, including:
Remember that your credit score indicates your creditworthiness and how likely you are to repay the money you borrow. If you have a high credit score, lenders see you as less of a risk, which means you're more likely to be approved for a line of credit or loan.
With an 800-plus credit score, you're more likely to pay off your debts, so lenders can offer you better deals. This is true whether you're getting a mortgage, car loan, or trying to get a better interest rate on your credit card.
In general, if you have an exceptional credit score (if everything is in order) you will automatically be offered better terms on a mortgage or car loan. If you have existing credit, you may be able to refinance at a better rate because you have a higher credit score. As with any refi, crunch the numbers first to make sure the move makes financial sense.
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Credit cards are different, and you may need to ask for a better deal, especially if you've had the card for a while. If your credit score has recently reached the 800-plus range, or you've never reviewed your terms before - call your existing lenders, let them know your credit score and see if they can lower your interest rate. ask if increase your credit line. Even if you don't need a higher limit, it can make it easier to maintain a good credit utilization ratio (how much you owe compared to your existing credit).
Using a credit card you've had for decades may be good for the length of your credit history, but you may be missing out on valuable benefits. With a credit score over 800, you can get perks like access to airport lounges (great if you have a long layover), free breakfast at hotels, and the ability to earn cash back and earn airline miles faster. For example, one and a half miles per dollar spent instead of the standard one mile.
One easy way to find a better deal is to call your existing credit card issuer and ask if you have another card with better rewards and benefits. If so, the issuer can explain the application process (which you can do over the phone or online) and transfer you to a new card. You can also research credit cards online to find the one that's right for you.
By law, you're entitled to one free credit report each year from each of the "big three" credit reporting agencies—Equifax, Experian, and TransUnion. If you time your inquiries, you can get a credit report every four months, so you can monitor your credit report throughout the year. There's only one place to get your free, federally mandated report: AnnualCreditReport.com.
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Although your credit report does not include your FICO score, you can check it for free if your credit card issuer participates in the FICO Score Open Access program. According to FICO, more than 200 financial institutions participate in the program, including Bank of America, Barclays, Citi, Discover, HSBC, Huntington Bank, Navy Federal Credit Union, PNC Bank and Wells Fargo.
If your credit card issuer participates, you can check your score when you log in to your account online, or it will be included in your monthly statement (or both). If you do not have access to your credit score through your credit card issuer or another lender, you can purchase it online from one of the three credit reporting agencies or at myfico.com.
Your credit score affects your ability to get a loan and the terms lenders offer, such as your mortgage interest rate. Your score can affect your job opportunities (employers often run credit checks) and housing opportunities (landlords also run credit checks). Your score can even be factored into the rate you pay for your auto and homeowner's insurance. Because this one number is so important, it's a good idea to keep track of it and take steps to improve it if necessary.
If you want to join the 800-plus club and can't avoid negative marks on your credit report, one of the best credit repair companies can be considered. Alternatively, if your credit is already exceptional and you're worried it won't stay that way, one of the best credit monitoring services can provide the peace of mind you need.
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Tired of trying to figure out what your real credit score is? In a landscape plagued by misinformation, understanding your true creditworthiness is minimal. Knowing your credit score allows you to identify areas for improvement and make detailed plans to improve your financial situation.
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Building a good credit profile is important to maximizing your financial benefits. A good credit profile opens the door to securing better mortgage rates and an affordable monthly auto loan payment plan when buying your next family home.
However, the truth is that many companies provide very inaccurate scores. By relying on these scores, you risk underestimating your true creditworthiness.
Imagine going to the doctor with a headache, and your doctor looks at you and writes you a prescription for painkillers without doing a thorough examination. While this may relieve your headache, you may not be aware of the underlying problem.
Most loan companies do. They provide general information without going into details. However, using tools like Experian Boost will give you a real score. They provide detailed information about your ranking factors, including:
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If you're tired of the uncertainties, we can help you find your true credit score and keep that number healthy. Here we go.
If you're new to credit, let's take a look at credit scores, how they're calculated, and how to improve yours.
A credit score is a three-digit number that indicates how likely you are to repay the loan on time. This will determine whether you'll be approved for a loan, which line of credit you'll be eligible for, and the rates you'll be able to get.
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