Knowing your credit score helps you see what prospective lenders see. That way, you have a realistic idea of what kind of financing product you’re eligible for and whether now is a wise time to finance more expensive items.
Meanwhile, you’re in luck if you’re establishing or rebuilding your credit. You can get a secured credit card with many lenders offering these monitoring services, such as Capital One and Discover. How this works is you make a deposit that becomes your credit limit. And when you open one, you gain access to these monitoring tools. Also: 5 ways to improve your credit score without a credit card Other credit card companies offering similar perks include Bank of America, U.S. Bank, Citi, Wells Fargo, Barclay, and American Express. Another option is Credit Sesame, which is also a free service to use. You’ll receive your VantageScore from TransUnion with daily updates. They also provide transaction alerts, allowing you to determine the validity of the information entered onto your TransUnion credit report. And if that information is inaccurate, you can get on top of it to dispute it before it causes any more harm. Another convenient feature is credit offers and approval odds. You could also use a service like myFico. myFico grants you access to your Equifax credit score with monthly updates. Further, a paid subscription unlocks credit scores from all three bureaus and FICO score versions for mortgages and auto loans. Therefore, if you’re in a position to buy a home or vehicle soon, the paid membership helps you learn where you stand before you apply to prospective lenders. Meanwhile, credit monitoring services often need your name, address, and last four digits of your Social Security number. Because you’re entering your personal information, try to use a private connection when setting up and accessing your account. Public WiFi makes it easier for your information to become compromised. Another difference resides in the criteria measured to determine the score. With FICO, your payment history is 35% responsible for your score, while 30% consists of the balances owed on your accounts. Comparatively, VantageScore places a higher weight on credit usage, balances, and how much available credit you have on your revolving lines. Say you have a credit card with a $1,000 limit; if your balance is $900, it’ll drop your score since, you’re using most of your credit line. Combining all factors, FICO assigns a score from a low of 300 to a high of 850. VantageScore uses the same scoring range as FICO.
