Your FICO score is a three-digit number that ranges from a low of 300 to a high of 850. It is based on the information located in your credit report. The number isn't static, and changes as the data in your credit report changes. A FICO Score Simulator can help you understand how these changes affect your credit score.
Identification
Your FICO score has five distinct factors to it. Within the score, 35 percent of it reflects how well you pay your bills. Another 30 percent measures how much debt you currently have. Fifteen percent is your average credit history. Ten percent is the amount of new credit you've applied for lately, and the remaining 10 percent considers the mix of credit types present on your report. All five factors are included in the calculation of your score.
Significance
Since your FICO score is based on distinct factors, the FICO Score Simulator is a proprietary online tool from MyFICO.com that shows you how a change to any of the scoring factors affects your FICO score overall. The simulator allows you to run different scenarios by changing one or more elements of your current score to see if that change will cause your score to rise, fall or remain the same. You can see how your score will improve if you pay off all of your debt, for example, or how your score changes by adding a new credit line.
Considerations
The simulator is a virtual change. It does not change your actual score, but simply acts as a guide to help you make decisions that will improve your score. The simulator is a tool that is included when you purchase one of the FICO products sold at MyFICO.com. Regardless of which product you chose to buy, the FICO Score Simulator is the same tool; therefore, if you want to have access to the tool, you should purchase whatever product works best for your current situation.
Warning
Not all credit scores are the same. There are websites online that both sell and give away credit scores. Keep in mind that these scores are not FICO scores, which are the scores used most by lenders, according to MyFICO. This is important because if you rely on a score that isn't a FICO score, you may think your score is higher, or lower, than it actually is under the FICO scoring model. You can only get your TransUnion FICO score at MyFICO.com or TransUnion.com, and you can only get your Equifax FICO score at MyFICO.com or Equifax.com. Experian stopped making its FICO score available to consumers in 2009, although they still make it available to lenders and other creditors, according to Bankrate.
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