One of the three major credit bureaus - Experian - has announced they'll no longer release FICO credit scores to consumers. The FICO credit score is from the Fair Isaac Corporation and is the credit scoring model that is used by lenders the most. There are other models but FICO scores are used by most of the large financial institutions and the largest credit card companies.
FICO and other credit scoring models use a mathematical formula to determine how good your credit is. They take into account any and all late payments you've ever made and how much debt you have now and then they come up with a core so they can decide whether or not they think you're a good risk for them to lend money to.
To put it into a nutshell this Experian announcement means that you'll no longer be able to see the FICO scores that some lenders are using when they evaluate your credit if they use Experian and most do.
Also Experian will be using other credit scoring models like V antageScore and its own PLUS score and they'll offer these scores for sale to consumers. The number ranges differ from the Fair Issac Corporation score and bottom out at 330 and top out at 830 for PLUS. But these will not be the same as the FICO scores offered by Equifax and TransUnion. Like comparing to apples and oranges it seems. Especially when you find out that VantageScores scores will be from 501 to 990. So there would be no value in buying these.
VantageScore was actually formed by the three major credit reporting agencies listed here and was sued by the Fair Isaac Corporation. But later Equifax was released from the lawsuit.
However Experian will still be selling FICO scores to its business customers because many companies have built-in systems they're already using and Experian doesn't want to lose any of their big business customers.
So what can you do? You can get a look at your Experian FICO credit score free if your lender will let you. Many l oan officers for any loans you're applying for such as personal loans , home loans and other mortgage transactions arranged through lenders will allow you to see the credit scores free.
You can still buy your FICO credit score from Equifax and Transunion, the other two major credit reporting bureaus. You'll still want to be able to access your personal credit report and the most widely used credit score that is based on your personal information before you apply for a loan, insurance policy or even a job. Although you can no longer get it from Experian, Equifax at least makes it easy for consumers to access their credit score online.
For more FICO score tips, secrets, how to get a free credit report online instantly, fix your own credit and get help with credit counseling and credit disputes -get advice, avoid scams and get free help from a caring credit expert - go to http://www.FreeCreditReportInstantOnline.com
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