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Your credit score is a pivotal factor that determines your financial well-being, offering a glimpse into how perfectly you can manage your financial obligations.

A lot of people think that by reviewing credit reports from the three major credit bureaus, they will see credit scores as well. However, this is not the case. Credit reports from these nationwide credit bureaus do not usually contain credit scores. Prior to talking about where you can get credit scores, there are a few things that you must know about credit scores themselves.

One of the major things to understand is that you do not have only one credit score. Credit scores are designed to represent your credit risk or the chances you will pay your bills within the set timeframe. You can calculate and check your credit score by using a method that uses the content of your credit reports.

Companies like FICO and score providers, such as the three major credit bureaus (Equifax, Experian, and TransUnion), use various types of scoring models. They might even use different information to calculate credit scores. The scores offered by these credit bureaus will also differ as some lenders might report information to one, two, all three, or none of them at all. Creditors and lenders might use additional information, other than credit scores, to choose whether to give you credit or not.

As you assess your credit health, there are a bunch of things that you need to know about how to see your credit score, why it is so important, and what factors affect it. Moreover, you also need to know how you can monitor and maintain your credit regularly. So, here you go!

How Credit Scores Work

A credit score can drastically impact your financial life. It plays a pivotal role in a lender’s decision to give you credit. Lenders are more likely to shortlist you for loans if you have a higher credit score. Similarly, they are more likely to decline your loan applications if you have lower credit scores. You can also get way better interest rates if you have a higher credit score, which can save you a lot of $$$ in the longer run. On the other hand, a credit score of 700 or higher is generally perceived as exceptional by lenders. However, every creditor defines their own ranges for these scores and their own criteria for lending. So, make sure you discuss things with them more openly.

What Is My Credit Score & How Can I Get It?

Now that you know how these scores work, you might be wondering how you can get them. Right? Well, there are a bunch of ways you can get your scores to skyrocket. Let us look at some of these ways, shall we?

1. You can buy credit scores directly from one of the three major credit card bureaus or other providers, i.e., FICO
2. Review your credit card, loan statement, or financial institution. A lot of credit card companies, loan companies, and banks have begun offering credit scores to their clients. It might be on your statement. You can also access it online by logging into your account
3. Lastly, you can also use a free credit scoring site or credit score service. Some of these sites might offer you a free credit score. Whereas others might offer credit scores to credit monitoring clients, paying a monthly subscription fee

5 Credit Score Factors | What Are They?

There are five main categories of credit activity that affect your FICO score. While FICO allows a certain percentage to each one, the math is not essentially hard and fast here. Having said that, they can offer you a great idea of what factors are more impactful than others. Here is a sneak peek at each of these factors:

Payment History: 35%

Paying your bills exactly on time is vital to establish a positive payment history. If you miss a single payment by 30 days or so, it can have a major negative effect on your credit score. The longer it remains unpaid, the more damage it will do. Similarly, other major negative impacts can also severely impact your payment history. For instance, charge-offs, foreclosure, loan default, bankruptcy, collection accounts, repossession, and more.

Amounts Owed: 30%

In this category, FICO will look up credit score and also a bunch of other factors. This will give them a clearer idea of how your debt balances might impact your ability to add a different credit account. These factors include:

1. The amount owed on individual accounts
2. The number of accounts that have a balance
3. The overall amount owed on all of your accounts combined
4. Credit utilization on your credit cards
5. Current installment loan balances compared with their original amounts

Length Of Credit History: 15%

Being able to utilize your credit over a longer time period responsibly can assist you in building and maintaining great credit. For this group, FICO looks at the age of your newest open credit account, the age of your oldest account, and the average age of all of your credit accounts. Moreover, it will also think about how long certain accounts have been open.

New Credit: 10%

Every time you apply for credit, the lender will generally run a tough inquiry on one or more of your credit reports. FICO will also consider such inquiries and how long it has been since you opened a new account. With such considerations, it can evaluate your most recent credit activities.

Credit Mix: 10%

Being able to manage various types of credit responsibly can help you enhance your credit score. As you naturally open new accounts, such as credit cards for everyday spending, mortgage loans for huge purchases, or auto loans, diversifying your credit mix could help you get your FICO score higher. Having said that, this factor would not make or break your lender’s approval decision. Thus, you are not necessarily required to open various types of accounts to enhance your credit.

How To Check What Factors Are Affecting My Experian FICO Score

You can seek services from reputed experts, such as Gifted Financial Services, to get information regarding what factors are impacting your FICO Score. You can check the factors through your online account. With such information, you can easily pinpoint the areas where you think you can improve. If you believe that “checking my credit score won’t do me any good,” you are probably mistaken here. By checking and reviewing, you can evaluate your weak points and work on them to improve your score.

How to Use Your Credit Score

Whether you are trying to maintain a good credit score or build credit, it is a great idea to keep track of your credit regularly. Here are some things that you should do:

Monitor Your Progress

In the short term, it is very much normal for the credit scores to fluctuate. You can monitor trends in your FICO Score over time to determine how well you are doing with your goals.

Determine Your Next Steps

Chunking down your score ingredients can assist you in understanding exactly what areas are holding you back from witnessing the improvements that you want. So, by knowing how to check credit score, you will be able to know what is hurting your score. This information can help you take concrete steps to improve your credit and alter your credit behaviors.

Spot Inaccuracies

As you check your FICO Score and credit reports, you can also look for potentially wrong information that might be hurting your score. If you come across anything, such as a falsely reported late payment by one of your creditors, you have the right to file a dispute with the three major credit bureaus. You can also contact the experts from Gifted Financial Services to have all the errors corrected.

How To Find Out Your Credit Score

When you finance a major purchase, such as a mortgage, or apply for a credit card, your credit score is one of many numbers a lender will consider before approving your application. This three-digit number will also determine the interest rate that you will be offered while you take a loan. This is going to impact the total cost over the entire life of the money that you borrowed. So, prior to applying for financing, it is vital to check your credit score and know where you are standing at the moment. In order to know your position, you can opt for either of the methods discussed below:

Use A Scoring Site Or Any Reputed Credit Score Service

In order to review your credit score at no cost, feel free to use websites such as Gifted Financial Services. By creating an account and signing up, you can get regular updates regarding your credit activity and scores.

Appeal Your Scores From The Major Credit Bureaus

“How to know credit score?” Has this question been bothering you lately? Well, bid farewell to this constant worry by accessing your score through one of the three major credit bureaus:

1. Experian
2. TransUnion
3. Equifax

Each of these bureaus has different credit monitoring products. Some of them are for free, while you are required to pay for others.

Check With Your Bank

Another way to check your credit score is via your bank. Many financial institutions provide credit services that permit you to keep tabs on any month-to-month fluctuations and your credit score. Generally, you can check your score through your mobile banking app or online account, or you can even ask a customer service rep if you are confused about anything.

Check With Your Credit Card Issuer

As the competition for credit cards heats up, a lot of companies are now giving new benefits to their clients, including access to credit scores. So, if you are worried about how to check your credit score, make sure to review the accounts tab the next time you make a payment. You can check to see if you can access your credit score. You should be able to view it about any charge. Many issuers also provide score simulators so that you can witness how specific actions (i.e., closing an account or paying off a balance in full) can make your score go down or skyrocket.

Go Through A Credit Counselor

If you are willing to access your credit scores but you are struggling with unending debt and you require help, then you should think about working with a credit counselor from a reputed nonprofit such as Gifted Financial Services.

Frequently Asked Questions (FAQs)

· How to get an 800 credit score?

There are a lot of ways through which you can get an 800 credit score, such as:

1. Making on-time payments to creditors
2. Keeping your credit utilization low
3. Having a long credit history
4. Maintaining a good mix of credit types
5. Applying for new credit lines and a lot more

By following these steps, you can literally get into an 800-credit score club.

· What’s my credit score, and how can I raise it quickly?

To raise your credit score quickly, you can enroll in a service that revolves around other payment information, such as utilities and rent payments, that are not typically included in your credit score. If you have had a greater record with such sorts of bills, getting help from experts such as those from Gifted Financial Services can help you raise your credit score in a minute or two.

· What is a good credit score to have?

The answer to this question will eventually be determined by the lenders. The ranges vary based on the credit scoring model. Generally, credit scores starting from 580 to 669 are thought to be fair, while scores from 670 to 739 are thought to be good – similarly, 740 to 799 falls in the “very good” category. Lastly, 800 and higher are considered excellent.

· Who is responsible for calculating the credit scores?

As we all know, there are three major credit bureaus in the U.S., i.e., TransUnion, Experian, and Equifax. These credit bureaus are responsible for calculating your FICO Score in various ways using the exact same information. They collect, analyze, and give out information about clients in the credit markets.

The Bottom Line

So, have you found the best way to check credit score yet? We bet you did! Your credit score is a number that can have a pivotal impact on your financial life. If you have a great credit score, you are more likely to qualify for loans and get better terms that can save you money. Learning what your credit score is and what contributes to calculating your score can really assist you in taking steps that can improve it all together.