How to Find My FICO Score

The FICO (Fair Isaacs Corp.) score is the score most lenders use in making an assessment about your suitability to grant a line of credit. Your FICO score can determine whether you get the credit you want. The higher the score the better positioned you are to get credit. Get your FICO score regularly. You cant get it free but it is easy to find your score: use the MyFICO website.

Instructions

1

Apply online at MyFICO.com (see Resources section). Click Get FICO Score. Choose to get your FICO score using scores from TransUnion, Equifax or both. The price is $15.95 for one or $30.90 for both, as of 2010. Click Continue.

2

Click Create Account to find your FICO score. A new window will open. Complete the application form accurately. Create your login name and password. Click Continue. Complete your payment details to find your FICO score. Click Continue. Review your application and payment details.

3

Click Submit. Your identity will be confirmed. Your payment will be authorized. Click Continue. Follow the online instructions. You will be given a link to click. Confirm your login name and password. Click Continue. Review your FICO score online instantly.

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How Fast Can I Change My Credit Score?

If you're looking to buy a house, take out a loan or get a credit card, the lender will check your credit score. The higher the score, the lower the risk for the lender and the cheaper the loan for you. If you're prudent, you can raise your credit score in as little as a few months. If you're reckless with your finances, you can damage your score in just a few weeks.

Definition

A credit score is a three-digit number, roughly between 300 and 800, that tells lenders whether you are creditworthy. Each time you borrow money, the lender reports your payment record to one or more credit bureaus. The credit bureas take this information and convert into a score. You don't have a single credit score. You have at least three. Each of the main credit bureaus -- Equifax, Experian and TransUnion -- calculates a slightly different credit score. These scores change to reflect your borrowing and repayment activity.

Calculating a Credit Score

You cannot accurately calculate your own credit score. The credit bureaus use complex formulas that are a closely guarded secret. However, certain types of information go into the calculation. Approximately 35% of the score is made up of your repayment history. If you've missed a few payments or were late in making them, your score will suffer. Another 30% reflects your total debt. 15% is the length of your credit history, and 10% is any new credit applications. The remaining 10% is determined by various other factors, including types of credit.

Finding Out Your Credit Score

You can get a free copy of all three credit reports once a year by going to AnnualCreditReport.com. This is the official website, authorized by the three credit bureaus. These free credit reports will give you an idea about the strength of your credit history, but they will not contain the actual scores. You can get the scores directly from the bureaus via their websites. You will have to pay a fee each time. If you are in the process of applying for a mortgage, you can also request the score from the lender.

Raising Your Credit Score

The easiest way to raise your credit score is to maintain a good credit history. This means making payments on time. A late payment is almost as bad as a missed one. Make sure you pay at least the minimum payment each month. You can also raise your credit score by paying down your debts and by diversifying the types of credit you have (credit cards, store cards, mortgage, loans). Do not cancel all of your old credit cards once you have paid off the debt. Having older cards lengthens your credit history.

Time Frame

The quickest way to raise your credit score is to fix any errors that you find on your credit report. Even a small mistake can hurt your score. If you see something on your report that isn't right, file a dispute with the credit bureau on its official website. The bureau must investigate and get back to you within 30 days. If the bureau agrees with you, it will change the erroneous information. This can improve your score in as little as six weeks.

Lenders report to credit bureaus every one or two months. If you've been paying down your debt, your score should reflect this within two or three months. It takes longer to raise a score simply by keeping up with monthly repayments. However, if you are conscientious, you can still improve the score within a few months.

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Student Loan Credit Problems

Student loans can be a burden to pay back. Payments can be high, especially if you are a graduate who owes tens of thousands of dollars in student loans. If you've missed payments or defaulted on your loans, your credit score will be affected, possibly preventing you from getting other kinds of credit. There are many programs that can help you get your student loans into repayment status, which will help to rebuild your credit profile.

Deferment

If you are unable to pay your student loans, you can ask your lender for a deferment. A deferment is where your lender agrees to not accept payments from you for a certain period of time. A common type of deferment is an in-school deferment, where you don't have to repay your loan as long as you are in school full time. While your student loans are in deferment, your credit score will not be negatively affected.

Income Based Repayment

Income-based repayment (IBR) is a student loan repayment plan that caps your monthly payments to a percentage of your income. In some cases -- if your income isn't high enough -- your payment may be as low as zero. You can qualify for IBR if you have Stafford, Grad PLUS or consolidation loans from the Direct Loan or Federal Family Education Loan. However, you won't be able to get IBR if your loans are in default.

Loan Forgiveness

You may be able to have part or all of your student loans forgiven by the federal government if you perform volunteer work, military service or teach or practice medicine in high-need areas. For example, if you serve in the U.S. Army in a high-need area, you may be eligible to have up to $65,000 of your student loans forgiven or you can work as a teacher in a high-need area -- like an inner-city school -- and have a portion of your student loans paid off for every year you work.

Consolidation Loans

If you have multiple student loans, you may find it difficult to keep track of all of your repayments. With a consolidation loan, you can send one check out to one lender and not have to worry about multiple payments. Once you have a consolidation loan, you can extend your repayment schedule to make your payments lower and more affordable. In order to find out which loan consolidation programs might be available to you, contact your lender.

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What Key Factors Impact Your Credit Score?

Key factors can negatively or positively impact your FICO credit score, affecting your ability to get a loan, rent an apartment or qualify for insurance. The number of accounts, payment history and types of credit cards you own help the Fair Isaac Company (FICO) determine your score and helps creditors assess your risk of defaulting on your payments. FICO scores range from a low 300 points to a high 850 points.To improve your credit score, the Federal Trade Commission suggests you pay your bills on time, review your credit report for errors and limit credit card use.

Payment History

Pay all your bills on time. Payment history accounts for about 35 percent of your FICO score. Debts that have gone into collections, late payments on your credit cards, tax liens, foreclosures and bankruptcy show a pattern of poor financial management, mark you as a poor credit risk and can stay on your credit report for up to seven years. Bankruptcies remain on your credit report for up to 10 years, according to he Fair Isaac Company.

Number of Accounts

Limit your number of credit cards especially if you carry a lot of debt. About 30 percent of your credit score is affected by how much you owe compared to your credit limits. For example, if your credit limits total $5,000 and your debts are $2,000, your debt-to-limit ratio would be 40 percent, lowering your credit score. Keeping your debt-to-limit ratio below 20 percent will produce a higher score and look favorable to creditors.

Age of Accounts

Avoid applying for a loan if you were issued your first credit card two months ago. Your length of credit history takes time to build and accounts for about 15 percent of your credit score. A longer credit history yields a higher score. Those with "thin credit" will have lower scores and must prove their ability to pay to creditors. If you have filed for bankruptcy, it may take several years to rebuild your credit and improve your score.

Types of Credit

Aim for a "healthy mix" of different types of credit, such as revolving accounts (credit cards) and a mortgage or car loan or installment type accounts. This can account for about 10 percent of your credit score and helps indicate your financial stability. Avoid owning too many high interest department store cards which can shave points off your credit score and signal to lenders you are a high credit risk .

New Credit

Resist the urge to apply for several cards at once. A high number of credit inquiries in a short period of time can drop your score. On the other hand, if you comparison-shop for a certain type of credit such as for a car or home loan, it will not lower your score as long as you do so within a 15- to 30-day period.

Tips

Order your credit report. You are entitled to one free annual credit from each of the credit reporting agencies. Examine your report for areas you can improve which will increase your score. Look for errors in your report that you can dispute and remove from your credit report. The Federal Trade Commission offers several tips for improving your credit score and repairing your credit.

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What Is an Average FICO Credit Score?

Your FICO credit score is a number between 300 and 850 that credit reporting agencies assign to you based on your financial history, and which creditors use to assess you as a loan candidate. Even if your repayment history is favorable, a below-average score can hurt your chances of obtaining a loan.

Nationally

About 58 percent of Americans have credit scores of at least 700, meaning most have relatively high credit scores. The national average is 692, according the Experian credit reporting agency. A creditor may consider your score low if it's below the national average, but other factors influence this decision.

By Location

What creditors consider a typical credit score may vary depending on where you live, according to Experian. New Englanders and people living in the west north central region of the country, for example, have the highest credit scores of any region, averaging 712 and 709, respectively. So though a score of 693 is higher than the national average, it's a relatively low score in these regions. Residents of the middle Atlantic average a slightly lower score of 702. Residents of the west south central region of the United States have the lowest credit scores on average at 673.

Creditor Requirements

Creditors may set their own credit score requirements for loan applicants, so they may require you to have a higher credit score than the local or national average. In general, creditors prefer borrowers with scores of at least 700. Slightly above the national average, it indicates that you're a relatively safe investment. A score of 720 is the essentially same as a score of 820 in a creditor's eyes, so aim for at least a 720.

Lowest Interest Rates

Your credit score doesn't just affect whether or not you get a loan. It can also determine the conditions of the loans creditors give you. A person with a score below 692, for example, is likely to pay higher interest rates on his loans than a person with a score of 720 or higher, who creditors are more prone to trust with lower interest rates. Fewer than 60 percent of Americans have scores above 700 and only 13 percent have scores above 800, so the average American doesn't obtain these favorable rates.

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How to Report Fraud & Identity Theft

Identity theft and fraud can devastate your financial standing. Criminals pose as you to open fraudulent accounts, then make as many charges as possible and run out on the bills while your credit reports take the hit. They also use your current credit cards and bank accounts if they can get the numbers. You may not even be aware that your identity is stolen or your accounts information is compromised until debt collectors call about unknown accounts or checks bounce and credit transactions are denied. Report the problem as soon as you find out to stop further damage.

Instructions

1

Call each of your credit card issuers and tell the agents your accounts may be compromised, the Federal Trade Commission (FTC) advises. Use the toll-free customer service line or fraud hot line number on your card or billing statement. The banks can change your account numbers so identity thieves cannot process charges through the old numbers.

2

Contact one of the three major credit reporting bureaus, explain that you are an identity theft victim and ask for a fraud alert and credit report copy. The FTC states that TransUnion, Experian and Equifax are required to cooperate in fraud cases, so the bureau you call will inform the other two about your alert request.

3

Read your credit reports carefully and call any unfamiliar banks or lenders to report the fraud. Identity thieves open accounts and have statements sent to different addresses so you are not aware of their existence. You will find such accounts on your credit reports, usually with high balances and delinquent payments. The issuers should remove them when you explain that you are a fraud victim and provide documentation, according to the FTC.

4

Fill out a police report about the identity theft and fraud, the FTC advises. You must give a copy to the credit bureaus if you wish to extend your fraud alerts from 90 days to seven years, according to the Utah Attorney General's Office. Credit card companies and other lenders may also want a copy before they remove suspicious charges or close fraudulent accounts.

5

Report any odd charges on your credit card statements. You may still see fraudulent transactions show up for a month or two after you report a fraud problem to your credit card companies. The FTC recommends disputing them immediately by calling the customer service number and asking for the appropriate fraud report form.

6

File a complaint with the FTC. It passes identity theft and fraud reports to relevant law enforcement offices and government agencies, which use the information to build cases against fraudsters.

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Does Paying Off Student Loans Bring Your Credit Score Higher?

With the price of tuition constantly on the rise, more and more people are taking out loans to pay for college. According to the American Council on Education, the average student graduates from a four-year private college with more than $17,000 worth of debt. The average master's student is $29,000 in debt, though it's not uncommon to owe much more. That much debt can drag down your credit score. Paying it off can help.

Credit History and Student Debt

Student loans are different from other forms of unsecured debt. While they do count against you when your credit score is calculated, they are not as bad as other types of loans. They are, however, included in your total debt. Lenders look at your debt-to-income ratio when deciding whether or not to lend you money. Having a lot of student debt can make it harder and more expensive to get a mortgage or another type of credit.

Using Your Student Loans to Raise Your Credit Score

Student loans are good for building up your credit history and raising your credit score. One of the most important factors in calculating your credit scores is your repayment history. It counts for more than total debt. If you are good at repaying what you've borrowed, lenders will want to lend you more. Thus, by keeping up with your student loan repayments, you are actually raising your credit score.

Paying Off Your Student Debt

Paying off your student debt in full can raise your credit score. It will lower your overall debt and raise your debt-to-credit ratio. However, it will not make a huge difference to the score, since student debt wasn't hurting it that much to begin with. However, lenders take more than the score into account when deciding whether you are creditworthy. You may find it easier to borrow money with the same credit score and a lower debt-to-income ratio.

Raising Your Credit Score

There are other ways to raise your credit score. If you have other forms of debt, pay them off before you pay off your student loan. Student loans are low-interest. Clear more expensive debt first, and make sure you make at least the minimum payment on everything. Check your credit report regularly to make sure there are no errors that could be hurting your score. You can get your report free of charge from annualcreditreport.com. If you spot something that is wrong or doesn't make sense, challenge it by filing a claim on the credit bureau's website. Fixing a mistake can raise your score in as little as 60 days.

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