Free FICO Score

FICO scores are used primarily when applying for any type of credit, whether it be a new credit card, a vehicle loan or even a mortgage. It’s used to determine whether you should be approved or denied, but more importantly it’s also used to determine what interest rate you should be given.

To see how much of a big difference a higher interest rate can make it’s best to look at an example. In the below table you’ll see FICO score ranges, along with the interest rate those ranges are likely to receive. In this example we assume the base APR (annual percentage rate) is 4.36% a mortgage term length of 30 years and initial loan amount of $250,000.

As you can see, the higher the score the less interest you have to pay. Over the life of a mortgage somebody with a excellent FICO score (760+) will pay $11,851 less than somebody with a good FICO score (less than 719) and a whooping $88,087  less than somebody with a bar credit score (under 619).

Where Can I Get My FICO Score For Free?

Now that you understand how important your score is, you are probably itching to find out what your score is. There are plenty of sites on the internet that specialize on providing FICO scores, but can you really get one for free?

The good news is that yes, you can get your FICO score absolutely free. There are a couple of options out there and we have listed them below in the order of best to worst.

1. Free FICO Score Through Freescore360

When you sign up to freescore360′s scoresense program you get access to all three of your FICO scores (each bureau keeps their own set of data and thus has their own FICO score) along with your credit reports. Enrolling in this program gives you a 7 day free trial, if you decide to keep the score sense program (which is also quite good, it explains areas in which you can improve your score) you will be billed $29.95 per month. They do make cancelling very easy – you can cancel any time by calling 1-800-972-7204.

Advantages:

• Easy to cancel
• All three scores, one from each bureau
• Alerts – find out whenever your score changes

Disadvantages:

• Slightly more expensive per month if you decide to extend your free trial

2. Free FICO Score With Freecreditscore

This works in a similar way to freescore360, you sign up to their credit monitoring program and then they give you your Experian FICO score. This program also comes with a 7 day free trial so as long as you cancel within that time, you will not be billed. If you do decide to stay with them you are charged $14.95 per month.

Advantages:

• Alerts – find out whenever your credit score changes, this can help you get lower monthly interest rates if your score improves.
• Center – find out how your credit score is calculated and changes you can make to improve your score.
• Estimator – find out how future decisions  (such as applying for a mortgage) will affect your score

Disadvantages:

• You only get your score from one bureau

Both of the above options let you get your fico score for free, you just need to remember to cancel your membership before the paid account kicks in. The choice is yours, but if you’re simply after the free FICO score, we suggest going through freescore360.

I’ve Got My Free FICO Score – Now What?

Now that you’ve gotten your free score, it’s time to see where you rank on the FICO score scale.

A = APR (annual percentage rate, aka the interest rate you pay per year).

As you can see, if you have a score of above 720 you’ll get the best interest rate on offer. If you don’t have a score above 720 then you need to start improving your score before your next loan otherwise you may find yourself paying a premium interest rate.

What can you do if you DON’T have a score above 720?

If you don’t have a score above the magical 720 mark, first of all don’t worry. All hope is not lost, follow our tips and you’ll soon be getting the best interest rates available.

Your best bet is to contact a credit repair expert, these are skilled companies which specialize in improving individuals credit scores. Below are some of our recommended credit repair companies.

Lexington Law Firm

The leaders in the credit repair space, they have teams of trained lawyers who have honed skills in the credit report dispute process. They successfully dispute over 1 million questionable credit records each and every year. They also have direct ties to two of the credit bureaus which means they can get items removed quickly.  There is a reason they are the leaders, they are the best in the business.

If you want to go the DIY route, then be warned – it’s a time consuming process that can take MONTHS to see results. Here are our five tips to improve your credit score:

• Pay all of your bills on time. Payment history accounts for 35% of your score, a history of late or delinquent payments will make your score drop like a rock. A history of on time payments will make improve it.
• Check your credit reports for inaccuracies. Incorrect/incomplete/false information on your credit report can be the cause of your low rating in the first place. Go through your reports with a fine tooth comb and make sure there are no errors. If there is, you’ll need to file a dispute. These disputes take approximately 60 days to complete.
• Use different types of credit. The types of credit you use account for roughly 10% of your score. There are two main types – revolving and installment. Revolving credit is something such as a credit card, you can use the credit as needed and once you repay it your available limit goes back to the original amount. Installment loans are loans with fixed repayments (such as a vehicle loan or mortgage), if you need more credit you’ll need to make a new application each time. Having a mixture of both is what increases your score.
• Pay down your debt. Your credit utilization ratio is accountable for 30% of your score, you want to try and keep this below 0.3. This ratio is worked out by taking the your total amount of debt and dividing it by your maximum credit limit. So if you have a credit limit of $100 and have debt of $40 your utilization ratio would be 0.4.
• Give it time. The length of your credit history accounts for 15% of your total score, if you’ve done all the above it might just be the case of needing some time for your score to improve. Negative items will also fall off your report after a period of 7 years.