The resource that lets Americans access their credit reports once a year for free is a much-needed service. This report can be a real lifesaver for some when it comes to monitoring a score for suspected fraud. But the reports that can be received for free are often not the reports that lenders look at to determine your creditworthiness.
Lenders usually use your FICO credit score. FICO takes all three of your credit reports, from TransUnion, Equifax, and Experian, and uses them to calculate a score that is supposed to determine your creditworthiness. This score can range from around 300 for a terrible score up to 850 for a great one, and you have to pay in order to get a look at it.
A lot of people may believe that the free option is what is right for them, and for many they would be correct. But there are some out there who really need a better look at the overall picture and would benefit from getting a look at their FICO score.
This could be because you need to apply for a major loan soon and need a handle on what is keeping your score down, or because you simply like to be proactive and take charge of your credit score to keep it strong for when you do really need it. Whatever your reason, the solution is the same. The best place for a paid credit score is www.myfico.com.
As mentioned before, most lenders want a look at your FICO credit score to determine your creditworthiness, which means that’s the one you should be looking at too. And what better place to look at your FICO score than directly from the source?
At myfico.com you can find three different score reporting options. On their home page, myfico.com pushes one of their services more than the other two, and that is probably because this service will make more money for them. This doesn’t mean that that particular service is not worth paying for. That all depends on what you are looking for in your credit reporting service.
The first of the three services is the “FICO Standard.” It’s pretty easy to understand why it’s called the “standard,” since it does not require a monthly subscription. It is, however, more expensive in the long run.
The FICO Standard costs $20 and for that, you will receive a one-time credit score report. This report will give you instant access to your score and report online, for up to 30 days after purchase. But the “standard” option will only give you the report from one of the three major credit reporting agencies, Experian, Equifax, or TransUnion. If you want more than one, you will have to pay $20 for each.
The next option, “FICO Quarterly Monitoring,” is the least expensive of the three options. It is $4.99 a month, though with the caveat that there is a minimum of a three-month subscription. Though there is a minimum of three months required with this service, it is still less expensive than the standard if you cancel after the three months are up.
“FICO Quarterly Monitoring” also allows you a 20 percent discount if you choose to purchase additional score reports through the “FICO Standard” option. This service includes ID theft insurance, alerts of suspicious activity sent to you via email, quarterly report analysis and online access to your FICO score.
The last service option available is the more advanced “FICO ScoreWatch,” which is the one they advertise most and the one for which a free trial is offered. The free trial lasts 10 days but if you don’t cancel your subscription within the free trial period you are locked in at $15 a month with a three-month minimum purchase.
The service is fairly pricey compared to the others, though perhaps that should be expected when dealing with the most extensive score reporting service FICO offers. In addition to the identity theft protection, email alerts and constant online access to your score that the quarterly service has to offer, “FICO ScoreWatch” includes a plethora of neat financial tools to help you make the most of your credit score.
With this service you receive 30 percent off the FICO Standard service, and you also receive two standard credit reports at no cost. But perhaps the most tempting aspect of ScoreWatch is the prediction tools offered.
With this service you have access to a tool that will allow you to know what interest rates you are most likely to get at your current credit rating, and you will receive tips on how to adjust your score for better rates. ScoreWatch also boasts a unique service that allows you to look at the projected outcomes of your potential financial decisions, learning what would happen to your credit score for each missed payment or new loan you take out.
It’s a tough decision to make, but it all boils down to what you are hoping to accomplish by purchasing your FICO credit score. Hopefully the new knowledge can help you gain valuable insight into what you need to do – or not do – to keep your credit score rising.
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