Your credit score can affect anything from the interest rate you pay on a loan or credit card to whether or not you are approved for a particular apartment. If your credit score is high, you may qualify for a wider variety of lending options at more favorable interest rates. Auto loans with 0% interest and credit cards with zero percent introductory rates are commonplace for borrowers with credit scores in the 750s and higher. In this article we will discuss the best way to check credit score for free, online, and without hurting credit.
To begin, let’s make sure everyone has a good understanding of what a credit score actually is.
What Is a Credit Score?
A credit score is a three-digit figure that measures your overall creditworthiness of borrower responsibility. Lenders use this score to quickly assess risk and your likelihood of repaying what you borrow.
According to Leslie H. Tayne, Esq., financial attorney and managing director of Tayne Law Group, P.C., “based on the details of your credit report, your score tells lenders at a glance how creditworthy you might be.”
Credit scores typically fall within a scale from 300 to 850, though this might vary depending on the type of score being used.
According to Tayne, “the higher your credit score, the better,” but you shouldn’t be surprised if it looks like your score is continuously shifting. Your credit score may change after each inquiry since different lenders employ different credit scoring methods.
There are a variety of factors that go into determining your credit score, and not all of them carry the same weight.
In determining your credit score, the following elements are taken into account:
- Amounts owed (30%)
- New credit applications (10%)
- Payment history (35%)
- Credit mix (10%)
- Length of credit history (15%)
In addition, your credit history will be the deciding factor. Creditors need assurances that you will responsibly repay their loans on schedule and in full. A person’s amounts owed, or percentage of accessible credit, is second only to their payment history when determining their creditworthiness. A decent rule of thumb is to never utilize more than 30 percent of your available credit at any given time. Your credit score is based mostly on these two factors, therefore working to improve them may increase your score overall.
How do Credit Scores work?
A person’s financial future is heavily influenced by their credit score. It’s a major factor in whether or not a creditor decides to extend your credit. If your credit score is good, lenders will be more likely to grant you a loan, but if it’s low, they’ll be more likely to reject your application. A higher credit score also makes it possible to qualify for lower interest rates, which can add up to significant savings over time.
On the other hand, lenders may provide lower interest rates to borrowers with credit scores of 700 or higher. Scores over 800 are regarded as exceptional. There is no universal set of credit scores or eligibility requirements, as each lender sets their own. Here is a rough breakdown of how different credit ratings are classified.
- Excellent: 800–850
- Very Good: 740–799
- Good: 670–739
- Fair: 580–669
- Poor: 300–579. Read CREDIT SCORE RANGE: What is a Good Range?
Types of Credit Scores
You have multiple credit scores, not just one. Because the two major companies that calculate scores, FICO and VantageScore, use slightly different methods, you may find that your score varies slightly depending on where you look.
“FICO and VantageScore are brands of credit scores,” says Rod Griffin, senior director of public education and advocacy at Experian, one of the three major credit bureaus. “They are like comparing General Motors to Ford; there are different versions of those scores for different types of lenders or different types of lending, for example, and that is really why there are many different scores.”
Therefore, auto lenders and credit card companies could utilize different credit scores. Many lenders utilize the Fair Isaac Corporation’s (FICO) scoring model, although some may use their own.
When it comes to credit scores, “the most popular model is the Fair Isaac Corporation (FICO) 8, where a good score is anything over 670,” explains Tayne.
Credit reporting agencies Equifax, Experian, and TransUnion developed VantageScore in 2006. While FICO may assign a distinct score to each credit bureau, VantageScore incorporates information from all three. Though FICO and VantageScore are the most popular credit scoring models, there are numerous others to choose from. Individual financial institutions may utilize their own secret information to establish credit scores.
What Factors Impact Your Credit Scores?
FICO and VantageScore, the two most popular credit scoring models, both take into account a number of the same characteristics but assign different weights to them.
Both scoring systems place primary emphasis on
- Payment History. A failure to make payments on time might have serious consequences. A 30-day or more overdue payment might have a lasting impact on your credit score.
- Credit Utilization. The percentage of available credit that you are currently utilizing. Use no more than 30% of your available credit at any given time. There are a few different tactics you might employ to reduce your reliance on credit.
These considerations carry a much lower weight, yet it’s still important to keep an eye on them:
- Credit Age. Your credit score will improve if you have had credit for a longer period of time and if the average age of your accounts is greater.
- Credit Mix. When calculating scores, it is advantageous to have more than one sort of credit, such as a traditional loan in addition to a credit card.
- How recently you have applied for credit When you make an application for credit, a hard query on your credit report is performed. This can cause a temporary decrease in your credit score.
What Are the Factors That Don’t Affect Your Credit Scores?
You probably already know that some actions, like always paying your bills on time, can have a beneficial effect on your credit ratings. However, you should be aware that not everything has an immediate effect on your credit, either positively or negatively.
While the following factors may have an impact on your finances, they often have little bearing on your credit score:
#1. Debit Card Transactions
When making purchases with a debit card instead of a credit card, there is usually no effect on your credit report or score. Credit card purchases are effectively cash advances that must be repaid at a later date. A debit card can be used to withdraw funds from an existing bank account. There is no need to obtain a loan.
Prepaid debit cards, which can be purchased with a specific monetary value already loaded onto them, work in the same way. The three major credit bureaus in the United States typically do not record activity on prepaid debit cards.
#2. Salary Reduction
Salary reductions can have repercussions in other areas of life, but they have no bearing on credit ratings itself. While income isn’t typically factored into credit score calculations, it’s crucial to understand that some lenders and creditors may take income into account when deciding whether or not to grant credit. The debt-to-income ratio (the total amount of debt you have divided by your annual income) may also be considered.
A lower income can also have negative effects on credit scores if it leads to missed or late payments. In addition, credit scores are primarily based on a person’s payment history.
#3. Engaging in Ceremonies
Credit ratings have nothing to do with whether or not you are married. After tying the knot, each partner will continue to maintain their individual credit profile.
However, if you and your partner decide to establish a shared line of credit, the accounts will show up on both of your credit profiles. Credit ratings might take a hit if payments are late or not made at all.
#4. Separating Maritally
Divorce itself doesn’t affect credit scores, but any late or missed payments on accounts, as a result, could have a negative effect. Property and obligations acquired during the marriage are considered jointly owned by both partners in a community property state. This means that if either of you ran up debts while married, you might have to pay for them together.
Even if the court orders your ex-spouse to handle a joint bank account, you still have to pay back any debts or obligations you incurred while you were married. Negative effects on credit scores may result from late or missed payments that are reported to credit agencies even if your name is removed from the account.
#5. Having a Credit Request Turned Down
Credit scores will not be impacted if an application for credit is denied. However, submitting an application could trigger a hard inquiry, which could have a negative effect on credit ratings. If your loan application is refused by many financial institutions, look into your credit report to see if there are any recurring patterns
How Are Credit Scores Calculated?
The data in your credit reports is used to determine your credit score. There are multiple credit reports, just as there are multiple credit scores.
Credit scores might differ based on the scoring algorithm employed and the specifics of each credit report. Most credit scoring models, however, take into account the following aspects:
#1. Payment History
Your payment history is the single most influential aspect of your credit score, accounting for 35% of your FICO score and 40% of your VantageScore. Your payment history is evaluated, with prompt payments being viewed positively and late payments, typically more than 30 days late, being viewed negatively. Also, your past 10 years of payments are available for review.
The best thing you can do for your credit is to maintain a consistent payment history for all of your monthly obligations. 100% of Americans with great credit scores reported having no delinquencies in their payment history.
However, if you have a delinquency on your credit report, it could lower your score. A delinquent will have a greater effect on your credit score if it was already high before the infraction. While the total amount of money in arrears is irrelevant, the length of time it has been that way is. After 30 days, your payment is considered delinquent, and the consequences increase every month that it remains overdue.
Delinquency will negatively affect your credit score, but only temporarily. After seven years, it will gradually lose strength until it disappears.
#2. Credit Balances
Credit balances and utilization account for 30% of your FICO score and 20% of your VantageScore, making them the second most important aspect in your credit score. In this section, we take a look at how much of your available credit you are actually using across all of your revolving credit accounts (like credit cards). This is called a credit utilization ratio or a debt-to-credit ratio.
The percentage of available credit you are using is calculated both across all of your credit accounts and for each individual account. Maintain a credit utilization ratio of 30% or below to maintain a decent credit score, as recommended by the general rule of credit utilization. If you want to maintain a high credit score, you should limit your use of credit as much as you can.
#3. Credit Report Age
The age of a credit account is a complex indicator that is monitored in a number of ways.
- Credit scoring algorithms consider the average age of your credit accounts, the age of your oldest account, and the age of your newest account to determine your creditworthiness.
- The length of time particular accounts have been active
- How long has it been since you logged in?
You may discover that as your credit card collection grows, you only use a select few and relegate the rest to the rubbish drawer. Your credit record will reflect that action or lack thereof. According to Jeanne Kelly, a credit counselor, “While this isn’t necessarily a bad thing if you’re trying to maximize your credit score, it’s a good idea to rotate your credit cards and consider using accounts that you haven’t used in a few years.”
Your average account age will decrease if you open many new accounts, but it will increase for the accounts you’ve had the longest. To avoid paying unnecessary annual fees, avoid opening new credit accounts unless absolutely necessary.
#4. Credit Account Mash-Up
Your credit report will include information about both revolving credit and installment credit. Credit cards and other forms of revolving credit are returned to you once you’ve paid them off, while installment loans are paid back in one flat sum. Consumers that maintain a healthy debt-to-income ratio on their credit reports are rewarded by the credit score algorithm. Having a combination of credit cards plus an installment loan, such as a mortgage or vehicle loan, is the best option. Credit is best served by taking out a loan of a more unusual variety.
But that doesn’t imply you should go out and seek a new loan with the sole intention of improving your credit score. Instead, ask for the credit you need and see your score grow gradually as time goes on thanks to responsible loan repayment. 10% of your credit score is based on the types of credit you use. You may want to consider a credit builder loan if you only have a few credit cards and no installment loans.
#5. New financing
The search for further credit represents the final broad heading. In most cases, your credit score will temporarily drop when you apply for new credit.
Hard inquiries from new credit applications do lower credit scores by a small amount. This drawback lessens with time and ultimately becomes an advantage. However, in the near term, opening a new line of credit can hurt your score.
Best Way to Check Credit Score
There are as many methods of finding out your credit score as there are credit ratings themselves. While many of these resources are free, there are certain groups that will charge you for their services. You may safely check your credit score whenever you please, and doing so may be a good idea, especially before making a major purchase like a car or house.
Checking your credit report won’t have a negative impact on your score, Tayne adds. If a potential lender pulls your credit report, it will lower your score.
#1. Charity Debt Advisor
Helping people get out of debt is the primary focus of credit counseling services. Advice on handling one’s finances, making a budget, negotiating with debtors, establishing more sound financial habits, and formulating a strategy to pay back loans are all part of this process.
Credit repair and debt settlement programs that cost money might have a negative influence on your score over time, but working with a nonprofit credit counselor can help you learn more about your credit report and make better financial decisions. The National Foundation for Credit Counseling is a good resource for finding a qualified credit counselor in your area.
#2. Get in Touch With Your Bank and Ask Them
You can also check your credit score by visiting your bank. Credit tracking services are available from some banks, allowing you to monitor your score and any changes it may have experienced during the month.
However, according to Ralph Haro, managing vice president of Capital One, “Credit is essential for many key moments in life: getting a car, renting an apartment, buying a home, and so on.” To improve your credit score, “the sooner you begin building your credit history, the better.”
If you are unsure whether or not you can view your credit score, you can check your online account or mobile banking app, or you can contact customer care.
#3. Consult a Credit Advisor
You may wish to consult a credit counselor from a respected non-profit, like the National Foundation for Credit Counseling (NFCC), if you are interested in gaining access to your credit scores and are also struggling with debt and believe that you need assistance.
Using a debt management plan (DMP), a credit counselor can provide advice and communicate on your behalf with your creditors to help you regain financial stability. Through a DMP, you can consolidate all of your monthly payments into one payment to your credit counseling service.
You can get your credit score, check your credit report, and possibly even receive credit education from a credit counselor. If you want to manage your debt and reach your financial goals, checking your credit is a tiny but significant step.
The trick is to only rely on reliable resources. Unfortunately, there are a large number of fraudulent websites that advertise free credit reports. If you want to prevent being scammed, Tayne advises sticking to well-known, trusted providers. “But if you want to test out a new service, do your homework first. Stay away from the service provider if there is any doubt about their reliability.
#4. Verify Your Credit Reports With Big Agencies
A free copy of your credit report and a credit score based on your report may be made available to you by the three main credit bureaus. Your credit report and FICO® Score 8 are free with Experian. For free with an Experian account, you may monitor your credit report and score and receive alerts whenever either one is updated. In addition, you’ll learn what you can do to raise your credit rating.
#5. Free Online Credit Reporting Service
Visiting a free credit scoring website is one of the best ways to check your credit score without spending a dime. These sites usually update anywhere from once per week to once per month, giving you easy access to your credit report, score, and/or credit monitoring. Signing up for simple credit report monitoring is free of charge. However, for a monthly price, other websites provide access to a wider range of features.
What Increases Your Credit Score?
You can improve your credit scores with only a few basic activities, such as getting access to accounts that report to credit agencies, keeping balances low, and paying payments on time. To see if you can improve your credit score, you can use Experian Boost®, a free program that gives you credit for on-time payments of recurring bills including cell phone, utility, and popular streaming service payments. However, it can be difficult to know where to start. Here are techniques to boost your credit score.
#1. Create a Credit Report
The first step in building your credit is to open accounts with financial institutions that will report to the major credit agencies (most major lenders and card issuers report to all three). Having at least five open and active credit accounts in your name will help you establish a respectable track record as a borrower.
If you’re just starting out or if your credit score isn’t very high, you might benefit from a credit-builder loan or a secured credit card. If your credit is already rather strong, you can benefit from a rewards credit card that doesn’t charge an annual fee. Having someone else vouch for you by adding you as a legitimate user on their credit card can also be useful.
Also, getting a credit report with a bureau is the first and most critical step if you are just getting started and have no credit history to speak of. Free Experian memberships and credit reports are available to everyone who signs up with Experian GoTM. After that, you can start establishing a positive credit history by taking steps like adding an official user.
#2. Keep Up With Your Payments
One of the most significant variables in evaluating your credit score is your payment history; a long track record of on-time payments is a strong indicator of financial responsibility. Defaulting on a loan or credit card payment by more than 30 days can have a negative impact on your credit score and should be avoided at all costs.
If you’re worried about missing a payment, setting up an automated payment for the minimal amount due will help (but don’t let your account go overdrawn). Contact your credit card company immediately if you are having problems paying a bill so that you can explore your options for dealing with financial hardship.
It’s also a good idea to keep tabs on any accounts you have that don’t show up on your credit reports (such as your gym membership and any subscription services you use). The collections firm handling your account may damage your credit, even if you make payments on schedule.
#3. Pay Up Overdue Bills
It may be beneficial to catch up on overdue debts. Maintaining a positive credit score requires balancing the fact that a late payment can stay on your report for up to seven years with the benefit of keeping all your accounts current. You won’t incur any more late penalties or have any more missed payments reported to your credit report either.
Credit counseling and a debt management plan (DMP) may assist persons with high credit card debt to make ends meet. A credit counselor may be able to help you convince your credit card companies to reduce your interest rate and bring your accounts up to date at a reduced payment.
#4. Reduce Outstanding Credit Card Debt
Having a high balance on revolving credit cards can contribute to a high credit usage rate and affect your ratings, even if you are not behind on your payments. Maintaining a low balance on revolving accounts like credit cards and lines of credit in relation to their limits is one way to boost your ratings. Credit utilization ratios are often kept in the low single digits by those with the greatest credit ratings.
#5. Limit Quantity of New Account Requests Per Unit Time
Improving your credit may need opening new accounts, but you should still apply for credit only when absolutely necessary. The hard queries on your credit report from each application can have a little negative impact on your scores individually, but their cumulative effect can be significant. By lowering your average account age, opening a new account might have a negative effect on your credit.
Even if queries and account age have little impact on your score, limit your applications. Only when comparing interest rates on major purchases like a vehicle or house is this not the case. Credit scoring models know that comparing interest rates is harmless, therefore they may reject requests quickly.
Do Credit Checks Hurt Your Score Negatively?
No. There is no risk in checking your credit score or report on your own. A question like that appears soft and has no bearing. Soft inquiries, whether initiated by you or a potential lender (such as a credit card business seeking new clients), have no impact on your credit score until you apply for a loan or other kind of credit shortly after the query.
A hard inquiry, on the other hand, is when a lender looks at your credit record because you’ve asked them to. Hard inquiries may reduce your credit score by fewer than five points, according to FICO.
Best Way to Check Credit Score Without Hurting Credit
Here are some ways to check your credit score for free.
#1. Subscribe to a Credit-Tracking Service
Experian provides individuals with free access to their credit scores and education on how to better manage their finances. The CreditWorks Basic subscription, which includes this service, also provides access to the following:
- Keeping an eye on your Experian credit report might help you spot suspicious activities such as account openings, balance transfers, good payment history, and dormant accounts.
- Credit reports and scores from Experian are updated monthly.
- Keep tabs on your FICO score and get updates if it fluctuates.
- CreditMatch provides unique financial product recommendations.
You’ll get use of Experian Boost as well. The timely payments you’ve made to certain telecommunications, energy, and streaming service providers can now be reported on your credit report thanks to this new tool. Some examples are AT&T, Disney+, HBO, Hulu, Netflix, Spectrum, and Verizon. It doesn’t cost anything and may immediately improve your FICO score.
It will only take you a few minutes to sign up for the website today.
#2. Free Credit Report Every Year
You may get a free copy of your credit report once a year from each of the three major credit reporting agencies (Equifax®, Experian®, and TransUnion®) by visiting AnnualCreditReport.com. As required by law, they are provided annually at no cost. You can mail the Annual Credit Report Request Form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Alternatively, you can call the major credit bureaus at 1-877-322-8228 to have your free credit reports mailed to you.
(Quick reminder: credit scores aren’t part of your free report. However, your credit score is determined in large part by the details that are in your credit report. In this method, you may see where your credit stands and choose what steps to take to raise it (such as disputing inaccurate information that may be lowering your score). Related Article: FREE CREDIT SCORE: How to Check My Free Credit Score (+Best Free Credit Score Sources)
#3. Utilize Free Credit Score Service
Credit monitoring service checks are considered soft inquiries and will not negatively affect your score. By showing you where you stand on the credit spectrum from very bad to very good, it’s still useful.
Most free credit monitoring services, nevertheless, employ a scoring formula (VantageScore) that isn’t widely used by lenders (FICO). Although the companies provide the basic service at no cost, they frequently promote their premium service.
Which App Shows a Free Credit Score?
Raising your credit score is a crucial part of getting your financial house in order. However, it might be difficult to figure out where to go and how to interpret your credit score. Fortunately, there is no shortage of apps that can help you keep tabs on your credit and learn more about the factors that go into determining your score. In recent years, a plethora of online credit score check services have emerged. Free credit score check is easier than ever, but choosing the ideal app can be difficult.
Here are some of the best apps that help you check your credit score for free.
#1. Credit Karma
Credit Karma provides daily updates to your credit score. Records are available from two of the three major credit reporting agencies (TransUnion and Equifax), and Vantage 3.0 is used to estimate credit scores.
Additionally, it also offers unique recommendations for raising your credit rating. They can help you find a credit card or other financial product that you’re likely to be approved for, though it should be noted that the company relies heavily on advertising partners to make these suggestions.
Also, it has recently branched out into the banking industry by providing customers with free checking and savings accounts.
Features:
- Offers fresh credit scores every day.
- Recommendations that are specific to the individual.
- Budgeting and financial planning software.
- Funding resources and help.
In addition, it offers a wealth of practical advice that can be used immediately to raise a person’s credit score if they are interested in doing so but are unsure of where to begin. You may quickly and easily look at various loan and credit card offers if you chose to do so on their platform. The application procedure is simplified by them because it only displays products for which you are likely to be accepted.
#2. Experian
The Experian credit bureau is one of the three main bureaus. The Experian app was developed so that customers could easily view and manage their Experian credit reports and scores. The app provides a very reliable estimate of your FICO score based on the FICO Score 8 model because it is managed by one of the major credit bureaus.
Every 30 days, you can check your current credit score using the Experian app. You’ll have access to your credit account history and credit score evolution. The app streamlines the process of disputing inaccurate information in your credit score so you can do it from the comfort of your own home at no cost.
Features:
- True FICO score once every month.
- Financial details
- Checking your credit.
- Boost from Experian.
Instead of using Vantage 3.0, Experian provides consumers with their FICO score. Lenders use FICO Score 8 and Vantage 3.0 to assess mortgage, credit card, and other loan applications.
The FICO model has been around longer, but the Vantage model was developed as an alternative in 2006. While Vantage 3.0 is gaining traction, many lenders continue to rely on FICO. Use the Experian app to check your FICO score before applying for new financial products to avoid surprises.
#3. CreditWise
Capital One offers the credit monitoring service CreditWise, which also functions as a credit simulator. (It is not necessary to have a Capital One account to use it.)
Knowing how potential purchases can affect your credit score is useful information to have on hand when budgeting. A credit simulator might be helpful here. If you use CreditWise, you can see how different choices will affect your credit rating.
The app also facilitates receiving credit notifications and reviewing one’s credit record.
Features:
- A comprehensive credit history
- An imitation of CreditWise
- Keeping an eye on your credit and safety.
CreditWise has several features that are comparable to other credit monitoring apps, but its robust credit simulator sets it apart. Although the credit simulator’s predictions may not be spot-on, it is still a valuable resource for anyone thinking ahead about their credit and finances.
Why You Need to Check Your Credit Score: Importance
It’s crucial to keep a check on your credit score since doing so:
#1. Makes It Easier to Grasp Your Current Financial Standing
One’s financial situation cannot be grasped without knowledge of one’s credit score. Knowing your credit score inside and out will help you determine if now is a good time to apply for a mortgage, finance a car, or make any other major expenditures.
#2.Facilitates Higher Credit Score Gains and Thus Lower Interest Rates
With this knowledge, you can take steps to improve your score gradually over time or start from scratch if necessary. As a matter of fact, many scoring websites allow users to play around with potential future changes to their score depending on actions such as making payments on time, making additional payments, and applying for new credit.
#3. Provides the Ability to Evaluate Several Banking Options According to Specific Criteria
You can gauge your likelihood of approval and decide whether or not to apply based on your credit score. Personal loan prequalification is another service offered by most financial institutions, allowing potential borrowers to find out what interest rate they might be offered based on their income and credit history.
Is It Ok to Check Your Credit Score?
Yes. There is no negative influence on your credit score that results from checking your credit reports or credit ratings. Checking your credit reports and scores regularly is a good way to verify your information.
Conclusion
The number that represents your credit score is a factor that can have a big influence on your personal finances. If you have a good credit score, you increase your chances of being approved for loans and receiving better conditions, both of which can result in cost reductions for you. You can improve your credit score by taking the time to educate and check yourself about what factors go into the calculation of your score and what that score actually represents.
Frequent Asked Question
Can I check my own credit score without affecting it?
Yes. Checking one’s own credit report or score has no effect on the score. In reality, monitoring your credit report and credit score on a monthly basis is a crucial way to confirm the accuracy of your personal and financial details and to spot early warning indications of identity theft.
What Is a Bad Credit score?
A bad credit score is defined as a FICO credit score of less than 670 and a VantageScore of less than 661. Remember that bad credit doesn’t have to hold you back. Fortunately, there are simple steps you can take to repair your credit, and you may even notice improvements immediately.
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