When it comes to credit score, asking “What if” means you probably already made a crucial mistake and your score has suffered. From missing payment to collections, canceling an old card to hard inquiries, it would be beneficial to know how these decisions (or mistakes) will affect your FICO score.
Well, now you can, as myfico.com has a credit score range estimator that we’re using more and more as a resource for our clients.
And the best part is that it’s free!
According to myfico.com, by answering ten simple questions, they can offer an estimated range of where your FICO scores will go.
The questions include:
1. How many credit cards do you have?
1a. How long ago did you get your first credit card?
2a. How long ago did you get your first loan? (i.e., auto loan, mortgage, student loan, etc.)
3. How many loans or credit cards have you applied for in the last year?
4. How recently have you opened a new loan or credit card?
5. How many of your loans and/or credit cards currently have a balance?
6. Besides any mortgage loans, what are your total balances on all other loans and credit cards combined?
7. When did you last miss a loan or credit card payment?
7a. What is the most delinquent you have ever been on a loan or credit card payment?
8. How many of your loans and/or credit cards are currently past due?
9. What percent of your total credit card limits do your credit card balances represent?
10. In the last 10 years, have you ever experienced bankruptcy, repossession or an account in collections?
The website then shows you your personal estimated FICO score range immediately.
Of course, this simulator doesn’t count as an official inquiry and no one is pulling your credit. Instead, it’s just a tool that will allow you to play with different scenarios to see how your score might go up or down.
For instance, you can investigate how your FICO score may react if you:
• Paid down your credit card balances under a certain percentage of your total available credit,
• Opened or closed accounts,
• Applied for new credit and added a new card or loan,
• A bankruptcy, collections, or missed payment just hit your account (or will fall off your credit report soon),
• Applying for new credit with several hard inquiries in a short period,
• How long you’ve had your credit cards and other loans.
Now, with MyFico’s credit score range estimator, you can see a reasonable approximation of what impact those actions will have on your score. The estimator offers a range of your FICO score, and it is just a simulation, although thought to be accurate since FICO is the nation’s top credit scoring model.
FICO is the nation’s preeminent credit score, founded over 25 years ago and used by up 90% of all financial institutions when they’re making decisions about lending to a consumer.
They also offer “customized product recommendations” to help you build your score.
But the best practices for keeping a great credit score still apply: pay all of your loans and debts on time, keep your balances low, don’t apply for too much new credit, and try to keep a good mix of mortgage, revolving, and installment loans.
These days, your credit score is more important than ever, and MyFICO offers a free helpful resource at https://www.myfico.com/free-credit-score-range-estimator/
For more help and if you need to increase your credit score significantly, please contact Blue Water Credit – we’re here to help.