Free FICO Scores Becoming Standard From Credit Card Issuers
More and more people are finding out something that used to be difficult to find out—at least for free.
Credit scores used to be top-secret and hard to get your hands on, unless you paid for them. You can get your free annual credit report from all three bureaus, sure, but if you want to know your credit score, it won’t be on there anywhere.
Now, thanks to new transparency laws handed down by the Feds, it’s much easier to find out your actual credit score. In fact it’s hard not to find out, if you have a credit card. Most credit cards are now offering FICO scores each month with your statement.
The latest financial institution to get on board with free FICO scores is NASA Federal Credit Union. They join Discover card and many other credit card issuers who are complying with the Fed’s edict that people should have free and easy access to their credit information.
FICO Scores are a popular way for prospective lenders to find out whether someone is a good bet to pay back a loan, or pay a mortgage, or pay their credit card balance. More than 90% of lenders assess risk based on a high FICO score.
When assigning a FICO score, the analytics agency looks at a lot of information, including every loan you’ve ever taken out, how long it took to pay it back, whether you’ve ever defaulted on a loan, how much money you owe to credit cards, and how must room you still have left on those credit cards.
The five factors in a FICO score
The five things that go into a credit score are:
• Payment history—do you pay your bills on time, that kind of thing.
• Debt to credit ratio—how much you owe, versus how much room you have left on your credit card. Should be lot s of room left on your card—don’t run it up to the maximum, ever.
• Length of credit history – the longer, the better. This is why to never, ever close a credit card if you can help it.
• Types of credit – they like to see a good mix, not just one type of loan.
• Amount of new credit applied for. If you’ve been going nuts applying for credit cards, it doesn’t look great for your FICO score.
The good news is, it’s now easy to find out your FICO score, and for free, too. Check and see if your credit card issuer is one of the many who are providing you with a free score.
Latest Credit Card Issuers News
Wells Fargo & Company has recently announced the release of tap-to-pay contactless consumer credit and debit cards. Wells Fargo cardholders are already familiar with the advantages of digital wallets and are involved in paying for purchases and initiating ATM transactions by means of their mobile phones, while tap-to-pay cards are something new.
Dog-lovers can get checks or credit cards printed with pictures of adorable pups. If you’d rather be at the beach, you can carry a credit card picturing the waves and sand. And now sports fans can order a new credit card with the logo of their favorite teams and players.
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Good news for American Express Platinum cardholders who live or travel in the Denver area: American Express has just announced plans to add a Centurion lounge to the Denver International Airport (DIA). And it will be huge—over 14,000 square feet—making it the second-largest Centurion lounge location.
The Walt Disney Company and Chase Card Services recently announced that they will continue their longstanding relationship, extending their co-branded Disney Visa Card, Disney Premier Visa Card and Disney Visa Debit Card programs in a multi-year agreement.